Estate agent Foxtons (FOXT) is a relatively new addition to the market, having floated on the stock exchange less than a year ago. Its progress since then has been impressive, and strong cash flow has allowed both maiden interim and special dividends. But management expects transaction volumes to slow in the second half as tighter restrictions on mortgage lending start to bite.
IC TIP:
Hold
at
280p
The impact of this slowdown on revenue should be countered by the financial contribution of newly established branches. Five new Foxtons outlets were opened in the first half, and there are plans to open a further two branches in the second.