Foxtons Group PLC Trading Update (8841M)
19 October 2016 - 5:00PM
UK Regulatory
TIDMFOXT
RNS Number : 8841M
Foxtons Group PLC
19 October 2016
FOXTONS GROUP PLC
Q3-2016 - Trading Update
19 October 2016
Foxtons plc (LSE: FOXT), London's leading estate agency, issues
its trading update for the quarter ended 30 September 2016
Total group revenue for the quarter was GBP37.5m (2015:
GBP43.5m) with revenue for the nine months ended 30 September 2016
totaling GBP106.3m (2015: GBP114.5m).
Sales revenue in Q3 was GBP12.2m (2015: GBP18.5m) reflecting a
continuation of reduced activity in the London property sales
market. Lettings revenue, whilst also reflecting lower levels of
new tenant activity, benefited from Foxtons strong renewals book
and grew modestly in the third quarter to GBP22.8m (2015:
GBP22.6m). The response to the marketing initiatives which we
launched to enhance our lettings business has been encouraging, in
particular, the new business which we have secured from the
institutional private rented sector (PRS). Our zero lettings
campaign, which commenced in August, has been well received and has
been extended to our new branches in Vauxhall and Peckham.
Continued tight cost control in Q3 has improved margins and we
expect to be broadly in line with full year market expectations.
Foxtons remains highly cash generative with no debt.
Leveraging our leading technology, we launched a new
"MyFoxtons," online portal in September, which gives customers
complete visibility on the entire sales and lettings processes,
without compromising on the high-touch, personal service they
receive from Foxtons agents. Customer feedback so far has been very
positive.
During the year, Foxtons opened seven new branches in Loughton,
Sutton, New Malden, Fulham, Maida Vale and most recently in
Vauxhall and Peckham, increasing the network size to 65 branches in
total. We are committed to open two more branches in Q1 2017 in
outer London.
Nic Budden, CEO, said:
"The long term fundamentals of the London property market remain
very attractive and represent a huge opportunity for growth with
nearly GBP3bn 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. "
For further information, please contact:
Foxtons Group plc
Jenny Matthews, Investor Relations Manager +44 20 7893 6484
Tulchan Communications LLP
Martin Pengelley +44 20 7353 4200
Forward Looking Statements
This trading update may include statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Group undertakes no obligation to update,
revise or change any forward looking statements to reflect events
or developments occurring after the date such statements are
published.
About Foxtons Group plc
Foxtons was founded in 1981 with the first branch opened in
Notting Hill Gate. Today with 65 branches and growing, the Group
focuses on the higher-volume, higher-value property markets in
London. The Company is able to generate high margins through its
business model, which combines:
-- A strong, single brand;
-- High levels of centralisation allowing low cost expansion of branches;
-- An innovative application of technology; and
-- A powerful culture of sales and service through outstanding training and staff development
The Group has a clear strategy to grow profitability by:
-- Targeting higher-volume, higher-value residential property markets in London;
-- Maintaining a balance between sales and lettings;
-- Providing a premium service which supports premium prices;
-- Expanding organically to maximise return on capital; and
-- Positioning itself for sales volume market growth.
Foxtons is a multi-award-winning estate agency, winning at
prestigious events such as the Sunday Times Estate Agency of the
Year, Best UK Large Lettings Agency (three years running), Best
Website and International Property Awards, for Best Estate Agency,
Lettings Agency, Marketing, Website, Training and many more. These
awards acknowledge our work-hard, results-driven attitude and
dedication to quality service.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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