8th Mar 2016 07:58
LONDON (Alliance News) - Foxtons Group PLC on Tuesday reported a dip in pretax profit for 2015 following the tough start to the year and a General Election-related slowdown, though revenue grew across its divisions.
The London-focused estate agent said its pretax profit fell 2.6% in the year to the end of December to GBP41.0 million, from GBP42.1 million in 2014, though revenue increased to GBP149.8 million from GBP143.9 million, a 4.1% rise.
Revenue grew across its business segments, covering its sales, lettings and mortgage broking businesses, but its adjusted earnings before interest, taxation, depreciation and amortisation margin was depressed, down to 30.7% from 32.1%, by a sharp slowdown in activity in prime London property markets. The group also suffered a slowdown prior to the General Election in the UK in May, and a weaker-than-expected recovery after the polls had closed.
Foxtons will pay a final dividend of 3.34 pence per share, up from 3.17p, and will pay a second special dividend of 2.89p, up from 1.99p. Along with the interim and first special payouts, Foxtons' total dividend will rise to 11.0p from 9.7p, a 13% rise.
Nic Budden, Foxtons' chief executive, said the London market continues to look "highly-attractive" in terms of sales and lettings, though cautioned it was too early to tell how the market could be affected by recent changes to buy-to-let taxation legislation and any economic uncertainty caused by the UK's upcoming vote on staying in the European Union.
"We have entered the new year with an encouraging sales pipeline, a strong lettings book and a clear strategy for further growth through our organic branch expansion," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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