Foxtons has reported a dismal performance during 2016 including total group revenue down by 11% from £150m in 2015 to £133m, and profits for the year likely to be down by 45% year-on-year.

Foxtons’ CEO Nic Budden (pictured) also warns that 2017 is likely to be equally painful for the company, saying that “should current levels of sales activity continue in the short term, it is likely that 2017 volumes will be below those in 2016”.

The company’s trading statement released today blames the dramatic decreases in turnover and profits on significant drops in sales volumes as the market continues to be “subdued”.

Its lettings revenues remained constant during the final three months of the year at £13m compared to the same period the year before, which Foxtons says it down to its “high levels of renewals despite lower levels of new tenant activity and some downward pressure on rents arising from increased stock”.

“Despite a challenging year across the residential property markets, we have continued to make good progress in respect of our strategic initiatives, including building our presence in PRS and new homes, and leveraging our technology using data analytics and digital marketing to enhance our customer proposition,” says Nic Budden.

“We also opened seven new branches in 2016 and a further two branches in outer London are due to open in Q1 2017. Looking ahead, we expect trading conditions to remain challenging in 2017. “Our balanced business model provides resilience against sales market cycles and we have a strong balance sheet with no debt.”

Budden’s calm response to the figures appeared to bolster sentiment in the City. Shares in the company rose slightly following the trading update.