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Foxtons Share Price And The Housing Market - Merged


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Brexit uncertainty and stamp duty hikes Criminally insane asking prices are to blame for a fall of almost 50% in profits at Foxtons this year

Fixed.

Tomorrow should be a good day.

Couldbnt have worded that better myself. I like the addition of the "Criminally". I might steal that off ya.

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Wonder how the share price will fare tomorrow?

"Foxtons will this week say its profits almost halved in the first half of the year, as the upmarket London estate agent bore the brunt of stamp duty increases and the uncertainty preceding the Brexit vote.

Profits for the six months to the end of June are set to come in as low as £12 million, according to broker Numis, compared with £20.5 million for the same period in the previous year."

Read more: http://www.thisismoney.co.uk/money/news/article-3704812/Foxtons-set-say-profits-halved-half-year-estate-agent-bore-brunt-stamp-duty-increases-Brexit-uncertainty.html

+2.36% so far

£12M profit

Not bad considering

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Share price falls wipe off half value of estate agency firms in last year

Falls in share prices over the last year have wiped off more than half the value of Countrywide, half the value of Foxtons, and some 40% off the value of LSL.

Savills’ share price has performed better but even so has fallen to the extent that nearly 29% of the value of the company has been wiped off.

Countrywide’s fall in value is the most jaw-dropping at £614m in the last 12 months.

Last July 27, its shares were priced at 528.5p, and on Monday were 244.6p – a 53.72% decline.

The current value of the company is £529m, compared with £1,143m a year ago.

On July 27 last year, Foxtons share price stood at 236.6p. The share price on Monday was 118.94p – a fall of 49.73%.

The current value of the company is £327m, compared with £650m a year ago.

On July 27 last year, LSL’s share price was 389.5p, and at the start of this week was 231.25p – 40.63% down.

A year ago, LSL was worth £399m, but two days ago was worth £236m.

Savills’ shares on July 27 last year were trading at 956.5p, but on Monday were 680p, a 28.91% drop.

This gave Savills a valuation of £950m, compared with last year’s market capitalisation of £1,337m.

Meanwhile, Purplebricks – which we cannot compare with last year as it did not float on the stock market until December – has seen its shares up 40%, or by £96m, as at Monday (before drops yesterday). Its market cap is around £342m.

Russell Quirk of eMoov, who did the number crunching, said: “Investor sentiment believes that the estate agency incumbents are vulnerable to new business models.

“If businesses in the high street fail to prepare and strategise for the future as driven by the consumer, then they will simply not perform adequately in the long term. Those like Foxtons that simply refuse to even acknowledge the change that is taking place are really going to be hit hard. We’re seeing that now in their valuation.

“The City is ruthless in its expectations of shareholder value and agility in tackling ‘what’s next’. The estate agency establishment is therefore a sitting duck whilst it procrastinates.

“No matter what the industry think of growth businesses like ours that burn cash whilst building technology, teams and brand, they are seen as ‘value’ as far as institutional investors are concerned.”

http://www.propertyindustryeye.com/share-price-falls-wipe-off-half-value-of-estate-agency-firms-in-last-year/

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Foxtons interim results: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FOXT/12910940.html

-- Group Revenue £68.8m (H1 2015: £71.1m)

-- Adjusted EBITDA¹ of £13.1m (H1 2015: £20.5m)

-- Adjusted EBITDA margin of 19.1% (H1 2015: 28.9%)

-- Profit before tax of £10.5m (H1 2015: £18.1m)

"Uncertainty surrounding the EU referendum led to slow residential property markets in London during the first half of the year. Although we achieved a Q1 revenue record due to a surge in property sales transactions in March ahead of the introduction of the stamp duty premium for buy to let properties and second homes, Q2 experienced a sharp contraction and we believe that the overall level of property sales transactions made in London during the first half of the year is substantially down on last year. The result of the referendum to leave Europe is likely to lead to a prolonged period of further uncertainty and we do not expect London residential property sales markets to show signs of recovery before the end of the year."

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The cash balance has dropped from £20.9m at 30/06/15 to £4.1m at 30/06/16.

The company started a one-off share buy-back programme in Dec 2015 which it completed in Feb 2016. In total, 7.1m shares were purchased (2.5% of issued shares) at a cost of £12.0m. Average price = £1.69.

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The cash balance has dropped from £20.9m at 30/06/15 to £4.1m at 30/06/16.

The company started a one-off share buy-back programme in Dec 2015 which it completed in Feb 2016. In total, 7.1m shares were purchased (2.5% of issued shares) at a cost of £12.0m. Average price = £1.69.

Current share price 121.76

Who did they buy them off :-)

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'It earned £13,522 per sale...'

That's huge.

Dead man walking, surely. Considering there's online models that will do the same job for a few hundred pounds instant saving for vendors here.

Most of this commission will be a slice of the London mega bubble too.

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It'll rattle about the 120 mark until the next bit of bad good news..

BOE lowering rates next week, supposedly, should spike the SP.

Although with the US leaing rates unchanged last week and Japan doing ditto overnight Carney would need to get a massive swing in the BOE voting from 8 - 1 against to loads in favour.

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BOE lowering rates next week, supposedly, should spike the SP.

Although with the US leaing rates unchanged last week and Japan doing ditto overnight Carney would need to get a massive swing in the BOE voting from 8 - 1 against to loads in favour.

Supposedly lowering them last month too.

With the £ down and insane HPI...they wouldnt dare...would they.

You got to remember, we're actually controlled indirectly from the US, when they raise we raise etc.

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