Foxtons (LON:FOXT) delivered an uninspiring set of results in its third quarter (Q3) of trading with group revenue remaining flat at £35.1 million, bringing total year-to-date revenue to £88.1 million, down from £93.7 million over the same period a year prior.
The estate agency blamed its lack of growth on a ‘challenging’ housing market that has seen the number of housing transactions fall amid declining house prices in London.
‘This was a solid quarter in a challenging market,’ Foxtons CEO Nic Budden said.
‘Whether it’s securing a premium valuation for a house sale or letting a property to a quality tenant, we know our customers value exceptional service that delivers results, and this is how we differentiate ourselves.’
‘We are managing the business for the current market conditions and remain confident in our long-term prospects,’ he added.
In its lettings business, Foxtons saw revenue increase to £23.1 million, up from £22.5 million in the same period last year, with renting remaining an attractive market.
Sales revenue in Q3 fell marginally to £9.9 million, down from £10.3 million, with Foxtons declaring that to be a strong performance considering the ongoing reduction in house transactions.
Unsurprisingly, lower transactions had a knock-on effect on the estate agency’s mortgage broking business, Alexander Hall, where revenues slid by £200,000 to £2.1 million.
Looking ahead, the company remains focused on improving efficiency in order to lower its cost base to a level that offsets the challenging market conditions the business is forced to endure.
The estate agency recognising that investments in technology will allow it to better serve customers while reducing operating costs and extend its branch reach.
Foxtons recently closed six branches as part of cost-saving plans to address the depressed housing market conditions.
But the estate agency remains committed to keeping its strong market presence in London where it covers around 85% of the city via 61 branches in the capital with no plans to make further branch closures.
Foxtons will issue a post close update in January 2019 ahead of full year results in February 2019.