Foxtons says it made a loss over the past six months as London’s difficult sales market drove down its turnover by 9% to £53 million during the first six months of the year.
The unprecedented £2.5 million loss before tax compares to a £3.8 million profit during the same period last year.
Its half yearly interim results make for grim reading, although at least its lettings business is holding its own.
23% sales decline
Revenue created within lettings only dropped by 1% to a revenue of £31.7 million, compared to a 23% decline in sales revenue to £17.2 million.
The rest of its revenue came from the firm’s Alexander Hall mortgages business, which turned over 4.1 million and is surviving on remortgaging activity rather than property purchases.
Comments within the report suggest that, while Foxtons is facing harsh trading conditions, it is likely to be in the same boat as other London estate agents.
Foxtons says it remains the market leader in both sales and lettings despite the poor figures, suggesting there is little that CEO Nic Budden and his leadership team can do.
“The property sales market in London is undergoing a sustained period of very low activity levels with longer and less visible transaction outcomes, which clearly impacts our business,” says Nic (pictured, left).
“We continue, however, to achieve market leading share of listings giving us confidence that our service- led, results-based model remains highly relevant to consumers.”
“Going forward we will continue to invest in our proposition to enable us to maintain our differentiation in the minds of buyers, sellers, landlords and tenants.