11th Mar 2015 08:24
LONDON (Alliance News) - Estate agency Foxtons Group PLC on Wednesday reported a rise in pretax profit and revenue for 2014 despite the company having suffered in the second half of 2014 amid a slowdown in the London property market.
Foxtons said its pretax profit rose 8.2% for the year to GBP42.1 million, up from GBP38.9 million last year. Revenue increased to GBP143.9 million from GBP139.2 million, despite sales volumes falling by 3.7% due to the slowdown in the second half. Lettings volumes increased 1.7% and mortgage broking volumes rose 23%.
Foxtons will pay a final dividend of 3.17 pence per share, up from 1.7 pence a year earlier, along with a special dividend of 1.99 pence, down from the 3.74 pence it paid in 2013. Its total dividend payouts for the year will be 9.7 pence per share, up from 5.44 pence.
"2014 was a year of contrasting halves. The first half was characterised by a very strong property sales market with transactions reaching their highest levels since 2008. In the second half we saw a sharp downturn in property sales volumes, particularly in Central London," said Nic Budden, Chief Executive Officer of Foxtons.
"Despite these challenging conditions in property sales markets during the second half of 2014, our centralised business model, effective expansion strategy and strong position in lettings enabled us to grow revenues and maintain high EBITDA margins," Budden added.
Budden said the company expects property sales activity to remain subdued in 2015 due to the increased uncertainty surrounding the UK General Election and the health of the UK economy. But he said the long-term fundamentals of the London market remain "sound and attractive".
Foxtons shares were down 3.9% to 190.75 pence at the open on Wednesday, one of the worst performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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