Foxtons has this morning given a gloomy trading update to the City and shareholders.
In a statement issued at 7am it says: “Conditions in the London property market remain very challenging with sales volumes lower than prior year.
“Foxtons entered 2018 with a lower sales pipeline compared to the same point last year and this resulted in lower levels of activity in the quarter.
“Performance in lettings was impacted by a slow start to January and the timing of Easter, which had a negative effect on revenue. In the first quarter of 2018 group revenue was £24.5m compared to £28.7m in the first quarter of last year.”
The breakdown of figures reveals a sales revenue well down at £8.2m so far this year - at this point in 2017 it was £11.1m.
Lettings revenues are at £14.3m (2017: £15.5m), and Alexander Hall mortgage revenue £2.0m (2017: £2.1m).
The firm says that whilst the sales pipeline has begun to improve it remains below where it was this time last year. “The performance of our lettings business improved towards the end of the quarter and throughout April” reports the company.
However, in a bid to bolster sentiment, the statement ends: “Foxtons remains in a strong financial position with a net cash balance.”