23rd Oct 2014 06:53
LONDON (Alliance News) - Foxtons PLC on Thursday said its third-quarter performance suffered from a sharp slowdown in London property sales in the period and said its expectation for market volumes to remain constrained in the second half means it has downgraded its earnings forecast.
The FTSE 250-listed estate agency said its performance in the third quarter to September 30 was hit by a slowdown in London property sales, coming after an "exceptionally strong" period in the nine months to June 30, when it said volumes hit the highest levels since 2007.
Group revenue for the third quarter was down to GBP39.9 million from GBP41.1 million a year earlier. Revenue for the nine months to September 30 remains above the year before, at GBP112.7 million against GBP103.7 million in 2013.
But the group said its adjusted earnings before income, taxation, depreciation and amortisation for the third quarter fell to GBP14.2 million from GBP18 million last year. While EBITDA for the nine months to the end of September is up, to GBP39.2 million from GBP37.3 million a year earlier, the group said it expects the weakness in the London market to remain in the short term and so expects its full year EBITDA to be below its previous forecast of GBP49.6 million.
"Despite the impact that market uncertainty is having on transaction volumes, we are continuing with our clear strategy, centralised business model and steady roll out programme which is delivering higher market share," said Foxtons Chief Executive Officer Nic Budden.
By Sam Unsted; [email protected]; @SamUAtAlliance
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