Foxtons Group PLC Trading Update for year ended 31 December 2016 (8440T)
January 11 2017 - 2:00AM
UK Regulatory
TIDMFOXT
RNS Number : 8440T
Foxtons Group PLC
11 January 2017
FOXTONS GROUP PLC
TRADING UPDATE
11 JANUARY 2017
Foxtons plc (LSE: FOXT) (the "Company"), London's leading estate
agency, issues its trading update for the year ended 31 December
2016 ahead of its audited results announcement on 8 March 2017.
Total group revenue for the year was circa GBP133m (2015:
GBP150m), with revenue for the quarter ended 31 December 2016
totalling circa GBP26m (2015: GBP35m). Adjusted EBITDA(1) for the
full year ended 31 December 2016 is expected to be approximately
GBP25m (2015: GBP46m).
The reduction in Group revenue for the year reflects the
significant fall in sales volumes immediately following the first
quarter of 2016. In the final quarter of 2016, sales revenues were
circa GBP12m (2015: GBP20m) as volumes remained subdued. Lettings
revenues in Q4 were circa GBP13m (2015: GBP13m) and have remained
more resilient, benefitting from our high levels of renewals
despite lower levels of new tenant activity and some downward
pressure on rents arising from increased stock availability. Our
lettings business remains a consistent and recurring revenue stream
which comprises over half of group revenues.
We have continued to focus on maintaining tight cost control
while market conditions remain challenging, which provided
protection to our EBITDA margin during the second half of the
year.
Nic Budden, CEO, commented:
"Despite a challenging year across the residential property
markets, we have continued to make good progress in respect of our
strategic initiatives, including building our presence in PRS and
new homes, and leveraging our technology using data analytics and
digital marketing to enhance our customer proposition. We also
opened seven new branches in 2016 and a further two branches in
outer London are due to open in Q1 2017.
Looking ahead, we expect trading conditions to remain
challenging in 2017. Should current levels of sales activity
continue in the short term, it is likely that 2017 volumes will be
below those in 2016. Our balanced business model provides
resilience against sales market cycles and we have a strong balance
sheet with no debt. Our high-touch approach to customer service
continues to be a key differentiator and as the most recognised
residential brand in London, we are uniquely positioned to manage
through the market uncertainties and take advantage of any change
in conditions."
For further information, please contact:
Foxtons Group plc
Jenny Matthews, Investor
Relations Manager +44 20 7893 6484
Tulchan Communications LLP
Peter Hewer/Jessica Reid +44 20 7353 4200
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014). Upon the
publication of this announcement via a Regulatory Information
Service this inside information is now considered to be in the
public domain
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.
Notes
1. Adjusted EBITDA is defined as profit for the period before
finance costs, finance income, tax, exceptional items,
depreciation, amortisation, profit on disposal of property, plant
and equipment and share-based payments.
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 2016 events such as the Sunday Times: Best UK Large
Lettings Agency (Gold three years running), Estate Agency of the
Year (Silver), Best Website (Gold), Training & Development
(Bronze); the Telegraph Property Awards: Best UK and London
Lettings Agency (Gold ), Best London Estate Agency (Gold) and Best
International and UK Estate Agency Website (Gold); 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
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