Shares were up 6% this morning with the news Q3 trading was in line with expectations.
Companies: Foxtons Group Plc
Some relatively positive news from Foxtons (LON: FOXT) today as the Group announced trading in Q3 has been in line with expectations, while lettings performance is slightly up on the same period last year.
Like its competitors, the Group has been dealing with a number of economic challenges including Brexit uncertainties, bolstered by the recent rise in Stamp Duty and continued pressure from market newcomers such as Purplebricks.
Winkworth released its Interims last month, which spoke of many of the same issues Foxtons is currently facing.
The Group reported total Q3 Revenue of £35m, slightly down on the £37.5m reported in Q3 last year. This brought total revenue for the nine months ended 30 September 2017 to £93.7m (Q3 16: £106.3m).
Several initiatives implemented by Management led to "modest" growth in lettings volumes versus the prior year, with lettings Revenue accounting for £22.5m of total Group Revenue, slightly down on the £22.9m in Q3 last year.
Sales Revenue was also slightly down at £10.3m ( Q3 16: £12.3m). The Group also remains debt-free.
Foxtons CEO Nick Budden commented:
"This was a resilient third quarter performance when set against the challenging conditions in the London property market."
FOXT was up 6% to 77p off the back of the update.
The stock has a rough year in 2017, reaching an all-time low of 64p just last week. Compare this to its all-time high of 373p in February 2014. Consensus forecasts FY 17 Revenues and Net Profit to continue its downward trend which began in FY16.