Foxtons expects 'more challenging' year for sales

Foxtons is expecting a “more challenging” year as it nears completion of an operational review of its business.

The London-focused agency brand said in a trading update this morning that its review will require investment in the brand and people as well as looking at headcount across its branches.

The agent said it expects the first half of 2023 to be more challenging than the prior year with a more subdued sales market as a result of higher interest rates and general economic uncertainty, as well as inflationary pressures. 

The update said: “Lettings revenues are expected to remain resilient despite these headwinds. Whilst the Group is cautious about the sales market outlook, the steady reduction in mortgage rates from the elevated levels seen immediately after the mini-budget is encouraging and may lead to more favourable markets as the year progresses.” 

Guy Gittins, chief executive of Foxtons, said: "Much has been achieved in a short period and it is great to see some of the team's hard work reflected in the 2022 results. The economic outlook for the year ahead remains uncertain, but we have a growing portfolio of non-cyclical revenues, and a refreshed operational strategy to rebuild Foxtons' estate agency DNA and return the business to its position as London's go to estate agency."

The update said lettings, sales and financial services all delivered revenue growth in 2022, ahead of market expectations at around £140mm up 11% year-on-year). 

Adjusted operating profit is also ahead of market expectations, Foxtons said.

Details of the operational review and outcomes will be presented alongside the 2022 full year results on 7 March 2023.

https://www.londonstockexchange.com/news-article/FOXT/unaudited-fy22-year-end-trading-update/15811069