LONDON (ShareCast) - (ShareCast News) - Estate agent Foxtons reported a drop in quarterly sales on Wednesday amid ongoing weakness in the London market.
In a trading update for the quarter to the end of September, the company said total group revenue fell to £37.5m from 43.5m in the same period a year ago, with revenue for the nine months to the end of September down to £106.3m from £114.5m.

Sales revenue in the third quarter was £12.5m compared to £18.5m, with ongoing reduced activity in the London property sales market. In Lettings, revenue benefited from a strong renewals book, up a touch to £22.8m from £22.6m, despite lower levels of new tenant activity.

Foxtons said the response to the marketing initiatives launched to enhance its lettings business has been encouraging, in particular, the new business which it has secured from the institutional private rented sector.

The company's zero lettings campaign, which started in August, has been well received and has been extended to its new branches in Vauxhall and Peckham.

Foxtons highlighted continued tight cost control in the quarter and said it expects to be broadly in line with its full year market expectations.

Chief executive officer Nic Budden said: "The long-term fundamentals of the London property market remain very attractive and represent a huge opportunity for growth with nearly £3bn in total sales and lettings commissions on 2015 volumes. We have built Foxtons to withstand sales market cycles with our lettings revenue comprising over half the business.

"We are pleased with the response we have seen to the strategic initiatives which we have implemented to grow our lettings business, and also the successful launch of the new MyFoxtons portal."

Back in June Foxtons has warned that its full-year profit and revenue would be lower than expected due to "significant uncertainty" prompted by the Brexit vote.

At 0805 BST, Foxtons shares were up 7.4% to 101.50p.

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