Foxtons Group PLC Trading Update for year ended 31 December 2017 (8521C)
January 25 2018 - 1:00AM
UK Regulatory
TIDMFOXT
RNS Number : 8521C
Foxtons Group PLC
25 January 2018
FOXTONS GROUP PLC
TRADING UPDATE
25 JANUARY 2018
Foxtons Group plc (LSE: FOXT) (the "Group"), London's leading
estate agency, issues its trading update for the year ended 31
December 2017 ahead of its preliminary results announcement on 28
February 2018.
The Group's performance for the year was in line with the
Board's expectations. Group revenue was circa GBP117m (2016:
GBP133m), with revenue for the quarter ended 31 December 2017
totalling circa GBP24m (2016: GBP26m). Adjusted EBITDA(1) for the
full year is expected to be approximately GBP15m (2016: GBP24.6m).
In addition we will be recognising a circa GBP2m non-recurring
charge as we continue to manage our cost base for the future
benefit of the business.
Group cash performance for the year was strong, supporting a
strong balance sheet with no debt. Year end cash was circa GBP18m
(2016: GBP9.5m).
The reduction in full year Group revenue compared to the prior
year was driven mainly by the significant fall in sales volumes in
the first quarter of 2017, as the first quarter of 2016 benefitted
from the surge in sales transactions ahead of the introduction of
the stamp duty premium for buy to let properties and second
homes.
Sales revenue for 2017 was circa GBP42m (2016: GBP55m). Sales
revenue in the final quarter of 2017 was circa GBP10m (2016:
GBP12m) as the activity levels we saw during Q3 continued
throughout Q4.
Our Lettings business remains a consistent and recurring revenue
stream for the Group. Total Lettings revenue for 2017 was circa
GBP66m (2016: GBP68m) driven by the impact of downward pressure on
rents across the market throughout the year. In the final quarter
of 2017, lettings revenue was circa GBP12m (2016: GBP13m).
Alexander Hall mortgage broking revenue was circa GBP9m for
2017, and was broadly in line with the prior year.
Nic Budden, CEO, said:
"This was a solid performance in the context of ongoing
challenging conditions in the London property market. We remain
focused on achieving the best results for our customers and are
pleased with the reaction to the recent growth initiatives in our
lettings business.
Looking ahead, we expect trading conditions to remain
challenging throughout 2018. We are well placed to withstand these
conditions due to our strong balance sheet with no debt, and we
will provide an update on a number of strategic initiatives which
we have been working on at our preliminary results presentation on
28 February 2018."
For further information, please contact:
Foxtons Group plc
Mark Berry, Chief Financial
Officer
Jenny Matthews, Investor
Relations Manager
+44 20 7893 6484
investor@foxtons.co.uk
Teneo Blue Rubicon
Robert Morgan / Laura Stewart
+44 20 7420 3194
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 and non-recurring
items, depreciation, amortisation, profit on disposal of property,
plant and equipment and share-based payments.
About Foxtons Group plc
Foxtons is a multi-award-winning estate agency which was founded
in 1981 with the first branch opened in Notting Hill Gate. Today
with 67 branches, the Group covers most of London providing sales
and lettings services for higher-value properties.
This information is provided by RNS
The company news service from the London Stock Exchange
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