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Foxtons Share Price And The Housing Market - Merged


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Foxtons' losses widen

foxtons
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Estate agent Foxtons has reported a £3.2m loss, wider than the £2.5m reported a year earlier.

Nic Budden, chief executive, said: "The prolonged downturn in the London sales market and continued political uncertainty continues to impact our results.

"Looking ahead, we expect conditions to remain challenging and have effectively positioned the business to reflect this. In lettings, we expect our ongoing commitment to landlords in light of the tenant fee ban to improve further our proposition and we are confident this will continue to drive market share."

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On 20/05/2019 at 14:19, crazypabs said:

London is in the first days of its 'Tokyo 1990' mirror event.

At least a decade of price falls therefore to come IMO, needed to bring it back to the reality of 'affordability' for those who don't have hedge fund salaries or large stashes of embezzled cash to launder.

Mr. Budden has no idea what 'prolonged' means yet.

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1 hour ago, rantnrave said:

Foxtons' losses widen

foxtons
Getty Images

Estate agent Foxtons has reported a £3.2m loss, wider than the £2.5m reported a year earlier.

Nic Budden, chief executive, said: "The prolonged downturn in the London sales market and continued political uncertainty continues to impact our results.

"Looking ahead, we expect conditions to remain challenging and have effectively positioned the business to reflect this. In lettings, we expect our ongoing commitment to landlords in light of the tenant fee ban to improve further our proposition and we are confident this will continue to drive market share."

It might look like it’s stable at 0% change in google finance, but that’s because no transaction is happening. Bid and ask look as follows (based on delayed quote from LSE)

 

51FD6000-5737-4884-A438-C2DEFBC59FD0.jpeg

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1 hour ago, rantnrave said:

Foxtons' losses widen

foxtons
Getty Images

Estate agent Foxtons has reported a £3.2m loss, wider than the £2.5m reported a year earlier.

Nic Budden, chief executive, said: "The prolonged downturn in the London sales market and continued political uncertainty continues to impact our results.

"Looking ahead, we expect conditions to remain challenging and have effectively positioned the business to reflect this. In lettings, we expect our ongoing commitment to landlords in light of the tenant fee ban to improve further our proposition and we are confident this will continue to drive market share."

Interesting.

Both LL and tenants hate Foxtons.

 

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Probably waiting to see if Boris has an emergency budget.

Talk was of stamp duty removed for under 500,000£ or some other big move.

Would that be instant in an emergency budget?

I.E if your buying now would you be better waiting a few weeks to save ££K 

Would that also apply to additional properties under 500k would be interesting as many houses I have viewed have been both expensive and disgusting condition...so you have to keep you old house whilst you fixe the firs one into a habitable condition = xx k you have to have spare to hold until you can get that done + sell old house.

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  • 4 months later...

Foxtons closes branches in affluent sites as it tightens cost control in worsening market

https://propertyindustryeye.com/foxtons-closes-branches-in-affluent-sites-as-it-tightens-cost-control-in-worsening-market/

Foxtons is closing offices in affluent locations as it battles against market conditions.

Four branches – in Barnet, Muswell Hill, Surbiton and Richmond – have all shut. While about 26 jobs are affected, it is understood that most staff have been relocated, with some four redundancies.

The closures, all in wealthy sites with strong local economies and commuter links, come just over a year after Foxtons closed its flagship branch in Park Lane.

A spokesperson for the agent said yesterday: “Foxtons continually reviews its cost base to ensure it reflects market conditions. Continued market deterioration and individual branch performance meant it was no longer viable to operate our offices in Barnet, Muswell Hill, Richmond and Surbiton.

“After consultation with all team members concerned, we decided to close these offices as of Monday, December 2, and are now in the process of relocating the majority of affected staff to other nearby branches.

“Our footprint across London means customers in these areas are well served by other nearby Foxtons branches and our business continues to grow market share in both sales and lettings, despite ongoing market weakness.”

Foxtons, emblematic of the London market and a symbol of the estate agency industry, has posted two sets of losses this year.

In February it posted a pre-tax loss of £17.2m for last year – down from a profit of £6.5m in 2017 – and in July it posted a £3.2m loss for the first six months of this year, citing the prolonged downturn in the London sales market and political uncertainty.

Coincidentally, Foxtons shares reached a high yesterday of 85.8p. They had not been this high since January 2018, when the price reached 84p.

Although after the sharp rise the shares subsequently subsided to 80p, they still ended with a 3% rise on the day.

There were suggestions that the rise was prompted by speculation that Foxtons would benefit if the Conservatives win the election.

The business still has some 60 branches across London and the home counties, according to its website.

 

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On 8/11/2014 at 6:07 PM, TheCountOfNowhere said:

Well, that's the beauty of not owning a house in the UK. When the time comes, you can just GTFOOH.

Yes not owning  a house means you are free to leave.  

On 8/13/2014 at 9:20 AM, TheCountOfNowhere said:

I know several "london people" who moved out a bit 3 years ( e.g clapham to Wimbledon ), ago and are now planning to cash in and buy BIG house much further out ( e.g. Wimbledon to Surrey ). They would do well to remember leverage works on the way up AND the way down.

The northants market has to have been been buoyed by this ripple effect, I was doubting my sanity earlier in the year when I saw some of the over priced rubbish that had been on the market for 3-5 years selling for the same asking price no one would pay for the last 3-5 years, but I guess when you've been handed £500K+ tax free and unearned cash for a flat then property looks like a 1 way bet from your point of view and that £500K 4 bed house ( that's only worth £250K ) looks to be a bargain. Meanwhile real workers with real wages are sitting scratching their heads wonder what is going on. London is destroying the country and a rebalancing is much needed.

It is not just London, many ares are affected by a ripple effect.   People like to be in the city especially London  when they are younger and want to enjoy the nightlife - bars clubs- restaurants etc, when they get older and want to have a family or want to retire then want to move to a less expensive location and maybe change jobs and work at a less frantic pace.  

It is the same in Cambridge and Oxford for instance where the same dynamic happens when people move from the city centre to the less expensive villages.  

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5 hours ago, rantnrave said:

Foxtons closes branches in affluent sites as it tightens cost control in worsening market

https://propertyindustryeye.com/foxtons-closes-branches-in-affluent-sites-as-it-tightens-cost-control-in-worsening-market/

Foxtons is closing offices in affluent locations as it battles against market conditions.

Four branches – in Barnet, Muswell Hill, Surbiton and Richmond – have all shut. While about 26 jobs are affected, it is understood that most staff have been relocated, with some four redundancies.

The closures, all in wealthy sites with strong local economies and commuter links, come just over a year after Foxtons closed its flagship branch in Park Lane.

A spokesperson for the agent said yesterday: “Foxtons continually reviews its cost base to ensure it reflects market conditions. Continued market deterioration and individual branch performance meant it was no longer viable to operate our offices in Barnet, Muswell Hill, Richmond and Surbiton.

“After consultation with all team members concerned, we decided to close these offices as of Monday, December 2, and are now in the process of relocating the majority of affected staff to other nearby branches.

“Our footprint across London means customers in these areas are well served by other nearby Foxtons branches and our business continues to grow market share in both sales and lettings, despite ongoing market weakness.”

Foxtons, emblematic of the London market and a symbol of the estate agency industry, has posted two sets of losses this year.

In February it posted a pre-tax loss of £17.2m for last year – down from a profit of £6.5m in 2017 – and in July it posted a £3.2m loss for the first six months of this year, citing the prolonged downturn in the London sales market and political uncertainty.

Coincidentally, Foxtons shares reached a high yesterday of 85.8p. They had not been this high since January 2018, when the price reached 84p.

Although after the sharp rise the shares subsequently subsided to 80p, they still ended with a 3% rise on the day.

There were suggestions that the rise was prompted by speculation that Foxtons would benefit if the Conservatives win the election.

The business still has some 60 branches across London and the home counties, according to its website.

 

They opened the surbiton one after gideon changed the renting rules I did chuckle wondering how long it would stay open.

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  • 1 month later...

Foxtons reveals £2.7m cost of tenancy fees ban as it navigates ‘very difficult’ year

https://propertyindustryeye.com/foxtons-reveals-2-7m-cost-of-tenancy-fees-ban-as-it-navigates-very-difficult-year/

The tenancy fees ban cost Foxtons £2.7m, the firm has revealed.

In a trading update, it said that group revenue for last year was down 4% on 2018 at £107m.

Lettings revenue was down 2% to around £66m, while sales revenue fell 10% to £33m.

Mortgage revenue was up by 3%, driven by growth in remortgaging which compensated for lower new mortgage volumes.

Despite the drop in income from sales and lettings, Foxtons described its performance as “robust” in difficult market conditions.

It had improved its market share in sales, and despite not increasing its property management fees to landlords as a result of the ban, managed to mitigate at least some of its effects with income from “wide-ranging improvements we have made to our lettings offer”.

During December Foxtons closed four under-performing branches – in Barnet, Muswell Hill, Richmond and Surbiton.

Foxtons said that the closures would cost an estimated one-off £6m.

The trading update did not mention pre-tax profits but said that adjusted EBITDA – defined as profits before tax, depreciation and other costs are stripped out – is likely to be in the range of £13m to £13.5m.

Foxtons finished last year with cash reserves of £15.5m, down from £17.9m at the end of 2018.

CEO Nic Budden said: “Our team should feel pleased to have delivered a solid performance in difficult market conditions as political uncertainty played a significant role in suppressing an already weak sales market.

“Looking forward, with the uncertainty of the general election removed, early signs are that the sales market may improve during 2020 and our sales pipeline is ahead of last year.

“It is, however, too early to predict how the market will behave during the year with structural issues like affordability and stamp duty continuing to act as a brake on sales volumes.

“Competition in the lettings market remains fierce.

“Overall, though, Foxtons has successfully navigated a very difficult period and is well placed to benefit from any lasting improvement in market conditions.”

Foxtons share price closed at abut 82p yesterday, little changed over the day.

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Theres another listed EA that half arsed follow -

Hunters Property Ltd

Only because  I had the misfortune to spend a evening at a do in Yawk with the arsehole.

AS far as I can work out, the company is nothing more than plates spinning.

AS far as I can be bothered to look, the books are all buying revenue and bolting struggling EAs together into a larger struggling group, somehow expecting economies of scale.

January 30, 2020Source: RNS
RNS Number : 3417B
Hunters Property PLC
30 January 2020
 

Embargoed until 07:00am Thursday

30th January 2020

 

The information communicated in this announcement contains inside information for
the purposes of Article 7 of EU Regulation 596/2014.

 

Hunters Property PLC

 

("Hunters" or "the Group")

 

Year end trading update

 

Hunters Property Plc ("Hunters" or the "Company" or the "Group" (Aim: HUNT)), one of the UK's largest franchised sales and lettings agency businesses, is pleased to provide the following trading update ahead of its final results for the year ended 31 December 2019.

 

Summary Headlines:

-      A stronger finish to 2019, with Network Income for the year up 7% at £42.4m

-      Ahead of plans to mitigate against the implementation of the tenant fee ban

-      Housing market sentiment improving

 

We are pleased to report the Group finished 2019 strongly, increasing Network Income1 for the year by 7% to £42.4m (2018: £39.4m).  We opened 20 branches during the year bringing the total Network's branches to 206.  The average Network Income from branches that joined in 2019 was £278,000 (2018: £186,000).  

 

Since the tenant fee ban was introduced on 1 June 2019 we have been steadily mitigating its impact, to less than 1.5% of turnover for those seven months.  Overall our Network Income in Lettings increased by 12% and in Sales by 5%.  Our underlying strategies and unaudited results have exceeded expectations.
 

We are delighted to announce that in 2019 we retained our 96% Customer Service Rating (2018: 96%), the 8th year in a row where we have exceeded 90%, and that Network Income per branch has grown 3% to £206,000 (2018: £200,066) despite the market's challenges2

 

We announced a further investment in technology last year with the aim to keep us at the forefront of productivity and efficiencies across our branches.  We remain pleased this project remains on track.  The plan is to roll out following testing and to have all offices converted by the end of 2021. We look forward to updating you on progress further in the year.  

 

We continue with our assisted acquisition programme to help branches buy businesses. We have invested in 7 lettings books over the last 18 months and this remains a policy that we are keen to develop further. For 2019 our income split was 66/34 Sales/Lettings (2018: 67/33).

 

Though we are only four weeks into the new year the view in the market is that sentiment feels to be improving and we look forward to updating you on our progress when we announce our full year results for 2019.  As things stand, we anticipate that we will be ahead of expectations. We believe market conditions and increasing compliance requirements will continue to motivate proven independent operators to become part of stronger group. Growing the lettings business as well as having grown to third in the market for Sold Subject to Contract 3, our investment in technology, training, marketing, and significant cost reductions, particularly in terms of portal charges means Hunters are well placed to attract independent agents  looking to progress.  We retain a strong financial position to both expand our network and with healthy dividend cover look to increase and maintain the Company's progressive dividend policy.

 

Glynis Frew, Chief Executive, said:

 

"We are pleased that our underlying business strategies have delivered ahead of the tenant fee ban and market challenges.  I am delighted with our Customer Service results as customers will always be our primary focus. Going forward, our technology project will enhance our service by driving productivity at a local level whilst simultaneously facilitating cost reductions in branches.  This, combined with our success in growing branch numbers organically means we are optimistic for continued success over the next few years."

 

The Company expects to announce its full year results on or around the 2 April 2020.

 

 

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Hunters problems will come the next few years as the franchisees can no longer pay the fees as theyve not the income.

They go on about backing out of letting, then go on about buying letting books.

The uptick in the share price is eye raising.

This stock should be trendign around 0p. Theres no value in it.

Just AIM idiots Id guess.

 

 

 

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https://www.thisismoney.co.uk/money/markets/article-8305331/Estate-agent-Foxtons-braced-shareholder-rebellion.html

Foxtons braced for shareholder rebellion over way it raised £22m from investors last month

 

2013:

https://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/10322287/Foxtons-float-shares-jump-20pc-on-market-debut.html

Foxtons float: shares jump 20pc on market debut

Foxtons, the London estate agency chain, has jumped on its first day of trading on the London Stock Exchange.

Shares in the group surged 22pc in conditional trading this morning, after the stock was floated at 230p in an intial public offering that gave Foxtons a market capitalisation of £649m. They closed up 16.1pc at 267p.

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