Crash in profits at Foxtons – and there could be worse to come
Profits at Foxtons crashed by over half last year, the agent said this morning.
In its preliminary results for the year to the end of December, pre-tax profits were £18.8m – down from £41m the year before.
Group EBITDA was also well down, from £46m to £24,6m, and the adjusted EBITDA margin stood at 18.5%, down from 30.7% in 2015.
Group revenue was also hit, down from £149.8m in 2015 to £132.7m.
Sales revenue was the big victim, and at £55m was down 23%, driven “by a marked step down in activity in the second half following the EU referendum and Stamp Duty changes”. The market, said Foxtons, remains tough, especially in central London.
The firm sold4,026 properties, against 5,558 the year before, but managed to drive its fee levels – £13,783 on average per property, £13,043 the year before.
Lettings revenue was down only slightly, by 1%.
CEO Nic Budden warned: “Should current sales activity continue through the remainder of this year, it is likely that 2017 sales volumes will be well below last year.”