Foxtons rising to the challenges ahead
London-based estate agent Foxtons released a full-year trading update this morning
What Foxtons said
Revenues and adjusted operating profit ahead of expectations for 2022
Non-cyclical lettings and financial services revenues account for c.65% of Group revenue
The first half of 2023 is expected to be more challenging than 2022
Foxtons is a good bellwether of the London housing market, with a focus on lettings and lower to mid-market London property sales, it has its finger on London's housing market pulse.
As we saw from the housing transaction figures earlier this week, 2022 was a strong year, the second strongest since the Global Financial Crisis and London outperformed the country as a whole as the race for space waned and workers returned to their offices.
With a new boss at the helm and a root and branch operational review nearing completion, Foxtons has a spring in its step for 2023, although it notes that housing market conditions in the sales market, will be more challenging than they have been. However, with a strong and growing lettings book, Foxtons has a balanced business and is doing what it can to smooth the impact of the cyclical nature of the markets it serves.
We expect the market to trim their Foxtons forecasts for 2023, but this reflects market challenges rather than company underperformance. In the meantime, Foxtons will be investing for growth and we believe it will exit 2023 on a firmer footing than it entered it.