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After closing six branches, has Foxtons finally turned the corner?

Latest trading update for third quarter reveals stabilising overall revenues and increase income from lettings.

Nigel Lewis

foxtons

Foxtons appears to have turned the corner following several years of disastrous results after it revealed a ‘solid’ performance yesterday despite ongoing tough conditions within the London market.

Revenue from all its operations for the three months ending 30th September hit £35.1m, exactly the same as last year.

But the company says it has been forced to close six branches within London in order to reduce its costs.

This includes four suburban offices (Beckenham, Enfield, Loughton and Ruislip) as well as its Barnes branch and a flagship store on Park Lane.

“We remain focused on driving efficiency and ensuring we have a cost base which reflects market conditions and recognises that our technology now allows us to serve customers with an extended branch reach,” says Nic Budden, its CEO (below).

Branch closures

The company said it has no plans for further branch closures. The third-quarter results for this year reveal only a £400,000 reduction in sales revenue when compared to the same period last year, increased turnover within its lettings division and only a modest drop in revenue within its Alexander Hall mortgage business.

Revenues generated from sales hit £9.9 million, lettings £23.1 million and mortgages £2.1 million. nic budden foxtons

The company says this more stable performance continued during October. Overall it’s a vast improvement on its half-year results published in July, which revealed the company’s first ever losses and a 23% decline in sales revenue.

“We are managing the business for the current market conditions and remain confident in our long-term prospects,” says Budden.

Read more about Foxtons.

November 13, 2018

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