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