27th Jun 2016 06:48
LONDON (Alliance News) - London-focused estate agent Foxtons Group PLC on Monday said the UK's decision to leave the European Union will add to the already-uncertain conditions in the London residential property market.
Foxtons said it is too early to accurately predict what impact Brexit will have on London property sales, but it said the upturn it had been anticipating in the second half is now unlikely to materialise.
As a result, revenue and adjusted earnings before interest, taxation, depreciation and amortisation will be "significantly lower" year-on-year in 2016, as challenging conditions continue through the remainder of the year.
First-half group revenue will be slightly lower year-on-year, Foxtons said, with a lower adjusted Ebitda margin due to subdued sales volumes and costs associated with recent investments the company has made in its branch network.
Foxtons will publish interim results on July 29.
"Looking further ahead, we remain confident on the attractiveness of the London property sales markets and our strategy to focus on the outer London mid-market segment. Furthermore, our strong lettings business provides strong downside protection," said Foxtons Chief Executive Nic Budden.
By Sam Unsted; [email protected]; @SamUAtAlliance
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