Foxtons targets £3m buyback after trading improves

Foxtons said it would buy back up to £3m of shares and forecast an annual profit after trading improved in the fourth quarter.

The estate agency chain said revenue rose 2% to £14.8m in October and November from a year earlier. Sales revenue increased 11% to £5.4m as agreed sales during the UK's mini-property sales boom turned were completed. Lettings revenue fell 1% to £8m as average rents fell.

Foxtons said it expected annual adjusted operating profit between £1m and £1.5m compared with an equivalent loss of £0.7m a year earlier. Cash at the end of December is expected to be more than £30m.

After raising £22m from shareholders in April to support the business during the first Covid-19 lockdown, improved trading has left the company with surplus cash, Foxtons said.

"The board believes the company has excess cash and that it is now appropriate to start to return this to shareholders whose support we appreciated at a time of great uncertainty," Foxtons said. "The company will therefore commence buying back shares in the market from today, up to a maximum consideration of £3m."