Investors impressed with maiden update from estate agent Foxtons

City A.M. Reporter
LONDON-FOCUSED estate agent Foxtons said yesterday it did not expect a significant rise in property sales across the capital, as it reported higher earnings and turnover in its first market update since its September market debut.

Foxtons, known for its fleet of staff-driven Mini Cooper cars and cafe-style branches, enjoyed a strong stock market launch when its shares opened 19 per cent higher above its offer price despite some concerns that the London property market was running out of steam.

It shares closed up slightly at 316p yesterday, having floated at 230p in September.

Foxtons blamed a shortage in the supply of property for sale and low mortgage availability for the flat sales this year.

“It remains to be seen whether the recent government help to buy initiatives and the early signs of a pick-up in mortgage activity ultimately lead to a significant increase in market volumes but these dynamics are expected to materialise slowly,” it said.
The company posted turnover of £41m, a 17.9 per cent rise on the same period last year, and a 23 per cent rise in core earnings for the first nine months of the year.