30th Jan 2020 10:51
(Alliance News) - Estate agent Foxtons Group PLC on Thursday said it recorded a "robust" annual performance, despite difficult market conditions, thanks to improved share in sales market and revenue growth from landlords.
The company said revenue for 2019 is estimated to total GBP107 million, down 4% from GBP111.5 million a year ago.
Lettings revenue fell 2% to GBP66 million due to the company's decision not to increase fees in response to the ban on charging letting fees from tenants.
Annual sales revenue fell by 10% to GBP33 million due to ongoing political uncertainty in the UK, particularly at the higher end of the market. Mortgage revenue grew by 3% in the year, the company said, with growth in re-mortgages outweighing lower new mortgage volumes.
The resilient revenue performance, Foxtons said, including a stronger end to the year, combined with continued control of operating costs means adjusted earnings before interest, tax, depreciation and amortisation post-IFRS 16 is expected to be between GBP13.0 million and GBP13.5 million for 2019 versus GBP3.6 million in 2018. Pre-IFRS 16 adjusted Ebitda is expected to be between GBP2.0 million to GBP2.5 million.
London-based Foxtons closed four underperforming branches in December and intends to take an impairment charge of GBP6 million in 2019, mainly arising from low profitability branches.
Nic Budden, chief executive of Foxtons, said: "Looking forward, with the uncertainty of the general election removed, early signs are that the sales market may improve during 2020 and our sales pipeline is ahead of last year. It is, however, too early to predict how the market will behave during the year with structural issues like affordability and stamp duty continuing to act as a brake on sales volumes.
"Overall though Foxtons has successfully navigated a very difficult period and is well placed to benefit from any lasting improvement in market conditions," Budden added.
Foxtons shares were up 3.3% at 84.30 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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