Foxtons (FOXT) only floated in September, but the London-focused estate agent's performance provides ample evidence - if any more was needed - of the buoyant demand for London property.
However, the restricted supply of homes coming onto the market meant that much of the 30 per cent cash profit rise was generated through an expanded network of sales outlets and an increase in average selling prices. Seven new branches were actually opened, bringing the total to 44, and a further seven are scheduled to open this year - five in the first half. In fact, the extended network helped to push unit sales up 22.5 per cent, compared with 9 per cent in the whole of the London market more generally.
Revenue generated from sales activity accounted just under half of group revenue and there was a similar contribution from the lettings side. Both remain highly profitable with cash profit margins of 39.1 per cent and 34.6 per cent, respectively. While strong cash generation meant a chunky cash pile and support to pay a special dividend.
Credit Suisse expects adjusted pre-tax profit for 2014 of £55.8m, giving EPS of 15.4p (from £42.1m and 13.1p in 2013).
| FOXTONS (FOXT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 376p | MARKET VALUE: | £1.06bn | |
| TOUCH: | 375-376p | 12-MONTH HIGH: | 402p | LOW: 230p |
| DIVIDEND YIELD: | 0.5%** | PE RATIO: | 31 | |
| NET ASSET VALUE: | 50p* | NET CASH: | £23.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010† | 103 | 13.2 | na | nil |
| 2011† | 116 | 25.6 | na | nil |
| 2012† | 120 | 24.9 | 8.0 | nil |
| 2013 | 139 | 38.9 | 12.2 | 1.7** |
| % change | +16 | +56 | +53 | - |
Ex-div: 30 Apr Payment: 30 May *Includes intangible assets of £118m, or 42p a share **Excludes special dividend of 3.74p a share †Prior to flotation | ||||
