Tough conditions in the London market have driven down sales revenues at Foxtons by over a third during the past three months, its latest trading update has revealed.
Total revenues at the company for the third quarter of this year were £37.5 million, down by 13.7% from £43.5 million during the same period last year. It’s total for the first nine months of the year is also down, from £114.5 million to £106.3 million.
Such a weak performance is largely down to it sales division, where revenues were down by nearly 34% to £12.2 million, while revenues from its lettings operations rose, but only by £200,000 to £22.8 million.
CEO Nic Budden (pictured, left), who will earn £550,000 this year before bonuses and share incentives, said: “The long term fundamentals of the London property market remain very attractive and represent a huge opportunity for growth with nearly £3bn in total sales and lettings commissions on 2015 volumes.
“We have built Foxtons to withstand sales market cycles with our lettings revenue comprising over half the business. We are pleased with the response we have seen to the strategic initiatives which we have implemented to grow our lettings business, and also the successful launch of the new MyFoxtons portal.”
The company’s two key strategies at the moment are to open more branches in outer London and lead with technology.
Outer London branch openings this year have included Loughton, Sutton, New Malden and Peckham while closer in, new sites have included Vauxhall, Maida Vale and Fulham.
On the technology front the company recently launched a virtual reality system for property viewings and has been investing heavily in its MyFoxtons online portal for both sales and lettings customers.