London estate agent, Foxtons has had its “toughest” ever year in London warning that 2019 will be challenging for sales, the company is expected to post an 80% drop in earnings.
Foxtons have faced higher costs, and a fall in sales as a result the company anticipates adjusted EBITDA, of approximately £3m compared to £15m in 2017.
Nic Budden, chief executive of Foxtons said, “2018 was one of the toughest sales markets” the estate agent had in London. Transactions fell to historically low levels.
However, Budden said, “Foxtons delivered a solid performance and has taken steps to ensure the business is best prepared for these conditions through prudent actions on cost and enhancements to our proposition.”
The company saw their revenue fall £7m from £118m, in 2017 to £111m, quarter four of 2018 saw revenue slip from £24m to £23m.
Revenue for lettings rose to £67m in 2018 from £66m and sales revenue nose dived from £43m to £36m, due to the company having lower transactions.
The estate agent will continue to operate their 61 branches across London, covering 85% of the capital.