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Foxtons confirms closure of six branches amid 'challenging' market

By Michele Maatouk

Date: Tuesday 13 Nov 2018

Foxtons confirms closure of six branches amid 'challenging' market

(Sharecast News) - Estate agent Foxtons reported a flat revenue performance for the third quarter on Tuesday as it confirmed the closure of six branches.
In a trading update for the quarter to 30 September, the company said group revenue was flat on the year at £35.1m, taking total revenue for the nine months to £88.1m, down from £93.7m the year before.

Lettings revenue ticked up to £23.1m from £22.5m in "what remains an attractive market", while sales revenue for the quarter was a touch lower at £9.9m versus £10.3m. Still, Foxtons said this was a "solid" performance amid ongoing reduced transaction levels.

Revenues from the company's mortgage broking business, Alexander Hall, slipped to £2.1m from £2.3m and Foxtons said trading last month was in line with the third-quarter performance.

Chief executive officer Nic Budden said: "This was a solid quarter in a challenging market. Whether it's securing a premium valuation for a house sale or letting a property to a quality tenant, we know our customers value exceptional service that delivers results and this is how we differentiate ourselves.

"We are managing the business for the current market conditions and remain confident in our long-term prospects."

Foxtons confirmed that it closed six branches: Beckenham, Enfield, Loughton, Ruislip, Park Lane and Barnes. It still covers over 85% of London from 61 branches and insisted there are no plans for any further closures.

Peel Hunt said: "While the sales pipeline remains volatile given the economic and political backdrop we see no reason to change our FY forecasts at this stage (EBITDA of £5m).

"The shares are down 40% year-to-date and currently trade on a FY18 EV/EBITDA of circa 22x."

At 1055 GMT, the shares were down 1.1% to 49.45p.





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