Foxtons Share Discussion Threads

[ny boy] 06/5/2015 12:43

Short before the interest rate cycle kicks in, say at 400p double top!

Let the bubble inflate further!

[cockneyrebel] 06/5/2015 12:33

Not after today's trading update imo NY Boy - that was far better than I expected and the market too imo:


FOXTONS GROUP PLC

Trading Update for the quarter ended 31 March 2015

30 April 2015





Foxtons plc (LSE: FOXT), London's leading estate agency, issues its trading update for the quarter ended 31 March 2015.





As expected the sales market has remained constrained during the months ahead of the General Election, while the lettings market has continued to show steady growth. Despite relatively low levels of activity in the London market, Foxtons total revenue for the first quarter was £33.1m, just 3.1% lower than Q1-2014 when the sales market was at its strongest since 2007. First quarter group revenue comprises sales commissions of £15.5m (-11.9%), lettings revenue of £15.9m (+5.4%) and mortgage broking revenue of £1.6m (+13.5%).

Our Adjusted EBITDA1 of £8.3m for the quarter generated a margin of 25.2% (Q1-2014: 31.8%), which is similar to that achieved in Q1-2013 when comparable sales market conditions prevailed.

Our current sales commission pipeline, which is a good forward indicator for short term future revenues, has held up well this year against very tough comparables for the same period last year. The growth in residential lettings has continued the momentum seen in the last two quarters and is broadly in line with the long term growth trend of 6%. The Lettings business accounts for approximately half of Group revenue and continues to provide a balance to a naturally more cyclical sales business.

We continue to see significant opportunities to expand our network across London with a focus on new territories and areas with strong growth potential. Since the beginning of the year we have opened five new branches in Barnes, Walthamstow, West Hampstead, Ruislip and Bromley, increasing the network to a total of 56 branches. We will open a further 2 branches by the end of the year.

Nic Budden, CEO, commenting on today's statement:

"As expected, property sales transactions in London have remained relatively flat since the end of last year with many potential buyers and sellers apparently delaying their decisions until the outcome of the General Election is known. Encouragingly growth in our letting business has continued from the momentum we saw at the end of last year.

The attractive long term fundamentals of the London property market remain sound and we are firmly committed to our organic growth strategy which will see between five and ten new branches open each year. Many of our branches are now located in less central areas where we have seen greater levels of volume growth recently."

[ny boy] 06/5/2015 11:56

It's not about Mansion tax, it's purely PCL prices are far too high and have been pumped up by zero interest rates globally which has created many different asset class bubbles of which PCL Property is one. Also there is a huge supply coming on stream over the next few years, once interest rates rise the party is over, this may happen faster if governments are behind the curve too.

Just short Foxtons higher up

[cockneyrebel] 06/5/2015 11:32

There's not gonna be a Labour coalition imo - Tory/Lib coalition or a a surprise Tory majority imo.

The mansions are safe imo :-)

CR

[cockneyrebel] 06/5/2015 11:27

1021 GMT [Dow Jones]--Foxtons PLC is "well placed" to benefit from a rebound in London housing transactions after uncertainty from the U.K. election passes, Barclays says. Foxtons' 1Q update, which showed revenue in the period was 3.1% down from last year at GBP33.1 million, was largely "reassuring" given the election headwinds. Notes shares after a recent rally look up-to-date with events. Maintains underweight rating and 179.2 pence target price. ([e-mail])

[cockneyrebel] 06/5/2015 11:24

Breaking through resistance here:


free stock charts from uk.advfn.com

[cockneyrebel] 05/5/2015 12:47

Rather strong today.

CR

[kmann] 30/4/2015 13:26

Once the election is over (who ever wins, you wont stop people buy or selling houses) and general UK growth continues this should double whammy on rentals AND sales.

[ayl30] 30/4/2015 10:19

Aishah, yes one of the reasons I like them is the organic growth they can achieve by opening up in new areas as they spread out of homeland of London. couple that with a very buoyant lettings business, now over 50% of turnover, and you have two motors of growth to offset any weakness or slower growth in C London sales. Lots of opportunity to grow North of London where there are large connurbations of relatively expensive houses. They have money to do it as well as paying a respectable divi. Historically their brand name / value was a bit 'flash' but they are now one of the respected names with repeat purchases / rentals breeding customer loyalty. Thats why I hold and unless the sky falls in I will continue to do so

[cockneyrebel] 30/4/2015 10:01

Numis say Buy today - 290p target.

CR

[cockneyrebel] 30/4/2015 09:47

The market really does like the trading update :-)

Added more this am.

CR

[aishah] 30/4/2015 09:00

Interesting update - locating branches to less central areas which is a good move imo.

[cockneyrebel] 30/4/2015 08:16

Decent statement today, considering how the London mkt has been hit by the election imo.

CR

[aishah] 29/4/2015 11:59

STV poll: SNP on course to win EVERY Scottish seat at general election


So we might end up with a Lab/SNP coalition. Not good for the likes of FOXT, CWD in the capital. All imo,dyor

[jpsmithson] 25/4/2015 19:28

Foxtons in Brixton had its windows smashed again, I think its the third time so probably nothing for holders to worry about.
Brixton is changing rapidly but its the same story as those living in the countryside complain about. High prices forcing locals out of the housing market so changing the community. I don't see how it can be stopped unless the locals refuse to sell their houses for massive profits, its not going to happen...

[aishah] 17/4/2015 13:46

UK house price growth is at its slowest since 2013, despite the cost of buying a house hitting record highs. The capital was particularly affected, as changes in stamp duty and fears of a mansion tax hit sales.

[kmann] 15/4/2015 11:14

Can see the next update going somthing like "although house prices in london have dropped, demand has exceeded supply, a trend not seen since 2007"

Thre is going to be a complete turnaround in sentiment and actual activity imo. Brokers have already recognised the swift return of the cycle.

Looks like win win, house prices go down, buyer move in to snap em up! Prices go up panic buyers jump in before its too late.

[ten bag man] 14/4/2015 08:27

Mike740 is that you buying back your short position for a wacking great loss.?

[cockneyrebel] 14/4/2015 08:03

Decent statement for Winkworth.

Tories extending right to buy - another 1.3m houses on the market potentially.

All imo

CR

[ten bag man] 13/4/2015 09:32

Where is our born loser ( shorter) mike740. ?

[cockneyrebel] 13/4/2015 09:09

Breaking out through the recent highs

CR