Foxtons prepares for year of challenges

LONDON-FOCUSED ESTATE agent Foxtons expects a challenging 2018 after last year’s core earnings and revenue fell in line with market expectations, hit by a slump in sales.

The company’s 2017 revenue was down 12 per cent at £117m with adjusted core earnings sliding 40 per cent to about £15m, Foxtons said on Thursday, adding that it will also take a one-off £2m charge as it manages its cost base.

Foxtons, which had been a symbol of the British capital’s property boom, saw profits more than halve in 2016 and had said in as early as 2014 that the real estate market was cooling.

Known for its fleet of Mini cars and coffee shop-style outlets, Foxtons suffered a particularly heavy fall in sales during the first quarter of last year ahead of a property tax increase.

“We expect trading conditions to remain challenging throughout 2018,” chief executive Nic Budden said.

“We are well placed to withstand these conditions due to our strong balance sheet, with no debt, and will provide an update on a number of strategic initiatives we have been working on.”

The company said its lettings business, where revenue fell by 3 per cent to about £66m, remained a “consistent and recurring revenue stream”.

However, government plans to ban lettings fees are likely to hit a key income stream for Foxtons.