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Trading statements

Foxtons FY revenues to be significantly lower

27 June 2016 07:19

London estate agency Foxtons Group has warned that it expects full year revenues and adjusted EBITDA to be significantly lower than last time.

The run up to the EU referendum led to significant uncertainty across London residential markets and the decision to leave Europe is expected to prolong that uncertainty.

The group says: "Whilst it is too early to accurately predict how the London property sales market will respond, the upturn we were expecting during the second half of this year is now unlikely to materialise. As a result, the challenging conditions we referred to in our April 2016 trading update, which have impacted recent property sales volumes, are now likely to continue for at least the remainder of the year."

2016 first half group revenue is now expected to be slightly below prior year with a lower adjusted EBITDA margin in the region of 20% primarily due to subdued sales volumes and the costs associated with recent investment in our branch network.

Chief executive Nic Budden said: "Whilst we had a strong start to the year, we said in our Q1 update that we expected the first half to be challenging ahead of the EU referendum. Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands. The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year.

"Looking further ahead, we remain confident of the attractiveness of London property sales markets and our strategy to focus on the outer London mid-market segment. Furthermore, our strong lettings business provides strong downside protection."

Story provided by StockMarketWire.com

Related Company: FOXT

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