Foxtons full year profit hit by London slowdown

Estate agency Foxtons posted a drop in full year pre-tax profit as the Central London market from which it generates a significant proportion of its revenues remained challenging.

For the year to the end of December, pre-tax profit fell 2.6% from 2014 to £41m, as revenue nudged up to £149.8m from £143.9m.

Foxtons said property sales transactions levels within the London market as a whole remained subdued throughout the year.

It said the increase in activity expected by many following the General Election in May 2015 did not materialise and as a result, 2015 property sales within Greater London were well below 2014 levels.

The company said activity in central London property markets has been constrained due to strong recent price growth and stamp duty changes, which have pushed up the cost of moving.

Still, Foxtons, which opened seven new branches in outer London areas of zone 2 and beyond in 2015, will pay a final dividend of 6.23p per share, taking the total dividend to 11p, up from 9.70p the previous year.

Despite the slowdown in London, the company remained optimistic about its prospects.

Chief executive officer Nic Budden said: “Looking ahead, the London residential property market continues to be highly attractive both in terms of sales and lettings although it is too early to predict how transaction volumes may be impacted by recent changes to the tax regime and the short term political and economic uncertainty caused by the UK referendum on leaving the European Union.

“We have entered the new year with an encouraging sales pipeline, a strong lettings book and a clear strategy for further growth through our organic branch expansion.”

At 1350 GMT, Foxtons shares were up 1.1% to 160p.