Terrible Times For Foxtons

Estate agency group Foxtons is ‘having a terrible time of it’ and ‘investors should steer clear’, a report says.

Money Week’s Investment Editor Sarah Moore claims that Foxtons has a reputation for being ‘flashy and a bit brash’ and while this approach may have worked well in the property boom it is proving less effective now.

The report also refers to Foxtons first ever losses last year, falling total revenue, its own gloomy forecasts for the future, and weak share price together with the substantial and controversial bonuses awarded to chief executive Nick Budden and finance chief Mark Berry.

Quoting analysts Numen and Berenberg who say that the property market appears not to be worsening and Foxtons are well placed to benefit from an upturn Money Week agrees to differ and comments: “That is all very well – but it assumes that a recovery is on the horizon. Given its disappointing recent performance, its decision at the beginning of the year to axe its dividend completely, and the fact that we wouldn’t bet the house on an imminent revival in the property market, we would suggest investors continue to steer clear of Foxtons for now.”

Source Money Week
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