Foxtons surges despite drop in interim profits
London-focused estate agency Foxtons Group posted a sharp decline in first half profit on the back of lower revenue and rising costs.
Foxtons Group
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16:40 03/05/24
FTSE 250
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In the six months to 30 June, the FTSE 250 group said its pre-tax profit fell to £18.1m, a 21% decline year-on-year, while revenue edged 2.3% lower to £71.1m.
The decline in revenue was attributable to an 11% year-on-year drop in property sales revenue, which fell to £33.7m in the period, while administrative costs rose 6% to £53m.
The uncertainty surrounding the outcome of the UK General Election on 7 May sent shockwaves through the real estate market and contributed to a sluggish performance in the first half, Foxtons said on Wednesday.
However, the group said it expected to meet its annual targets and was confident of delivering a strong performance in the second half of the year.
"Based on current activity levels continuing, we expect to meet full year market expectations with a stronger property sales performance in the second half of the year from higher transaction volumes," said group chief executive Nic Budden.
The company announced it will pay an interim and special dividend amounting to 4.77p per share, 5% higher than in 2014.
Foxtons shares were up 7.31% to 239.30p at 0902 BST on Wednesday.