6th Nov 2013 09:17
LONDON (Alliance News) - Newly listed London estate agent Foxtons Group PLC Wednesday said revenue for the three months ended September 30 was 18% higher than in 2012, with revenues from property sales showing growth of 29% driven by new branches.
The famously pushy estate agent known for its branded Mini Cooper cars and smartly dressed sales force reported group revenue of GBP41.1 million, as lettings and mortgage revenues grew 8.7% and 64%, respectively.
The group opened seven new branches in 2013, including in Brixton, south London, where the firm received a hostile reception from some residents who claimed they were being priced out of the area. However, Foxtons said the new branches are performing well and were opened on time and within budget.
It said the group had achieved an adjusted earnings before interest tax depreciation and amortisation (EBITDA) margin of 36.0% for the nine months ended September 30 up from 33.2% for the same period in 2012.
This was attributed to "higher revenues and the economies of scale and operational leverage inherent in Foxtons' centralised business model".
The company said it used the proceeds from its initial public offering to pay off debt, and it is now debt free, it said.
At the time of its IPO, Foxtons saw its share price soar after floating at 230 pence, at the higher end of the range, valuing the company at GBP649 million.
Looking ahead, Foxtons said London property sales transactions in 2013 have so far remained relatively flat, primarily due to a shortage in the supply of property for sale and low mortgage availability.
"It remains to be seen whether the recent government Help-to-Buy initiatives and the early signs of a pick-up in mortgage activity ultimately lead to a significant increase in market volumes but these dynamics are expected to materialise slowly," it said.
Foxtons said trading in the fourth quarter has started positively, though adjusted EBITDA is expected to be impacted by the operating costs of the two new branches opened in October and by the higher on-going costs of operating as a listed company.
The stock was trading at 300.00 pence Wednesday, down 15.50 pence or 4.9%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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