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Foxtons well placed

London's latest estate agent to float on the stock exchange looks set to deliver a strong performance.
March 5, 2014

London-focused estate agent Foxtons (FOXT) on Tuesday releases its first set of full-year results since floating on the London Stock Exchange last September. The group has a formidable position in the most vibrant and expensive segment of the property market, but its numbers for 2013 may be constrained by the lack of housing stock on the market.

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Turnover rose 18 per cent in the third quarter, but this was largely the consequence of new branch openings. And while there was a positive start to the fourth quarter, profits are likely to be affected by operating costs associated with the opening of two new branches in October and the higher running costs associated with the flotation.

It’s worth noting that more than half of group revenue comes from lettings, which are less volatile than transactions. The latter business has suffered from a shortage of properties coming to the market, though this may improve as mortgages become more readily available and consumer sentiment recovers.