What a difference a year makes. Just over a year after its massively oversubscribed IPO, shares in Foxtons have plummeted more than 16 per cent after it issued a profit warning saying "constrained" growth in London's housing market is likely to hit volumes in its second half.
The upmarket estate agent, known for its trendy, bar-style stores, posted revenue of £39.9m for the three months to the end of September, down from £41.1m during the same period the year before, while property sales commissions fell 7.8 per cent to £16.4m from £17.8m the year before, and lettings revenue remained flat at £21.9m.
The company said a combination of economic uncertainty in the UK and Europe, tighter mortgage lending conditions and "mismatches between the price expectations of buyers and sellers" all compounded its problems, adding that it now expects adjusted earnings before interest, tax, depreciation and amortisation to fall below its original forecast of £49.6m.
Nic Budden, the estate agent's chief executive, said it will press on with its "clear strategy, centralised business model and steady roll-out programme".
Foxtons remains highly profitable, cash generative and debt free, and therefore well positioned to deliver further cash returns to shareholders, building on the £28.1m of ordinary and special dividends paid since our IPO.