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Shoring up that portion of revenue which is recurring.
"Our balance of business enables the Group to withstand fluctuations in the property market thereby providing protection from the potentially volatile sales market. During H1 2020 the lettings business has contributed 64% (2019: 62%) of the Group's revenue, which has provided stability in the current volatile trading environment."
They intend to acquire more lettings books.
Raleigh
Don't disagree that lettings have been robust although it was flagged up in the half year report that loss of tenant fees has cost them £1.4m
Been playing devil's advocate I think just less confident than other posters here .Just wish they had managed to get a few more of these deals under offer over the line before it all starts going sour .
Having sold out the other week bought back in yesterday and happy to add circa 37p
That was a conscious business decision, in respect of which they later said, "In lettings, where our focus remains, we delivered another solid performance, despite the impact of the tenant fee ban which came into place in June 2019. The decision not to offset this through increased landlord fees, like some of our competitors, has further improved the attractiveness of our excellent offer and our market share. We continue to build our proposition for the growing institutional PRS segment."
And they followed up by buying London Stone Properties, "a high quality independent estate agent, primarily focussed on lettings in South East London. The acquisition forms part of the Group's stated strategy to acquire high-quality lettings books."
Certainly lettings a very important part of their business ,However far less profitable since tenant fees were lost
Foxtons implemented a 'fee-freeze' in response to the Tenant Fees Act, ensuring that any extra costs were not passed on to landlords.
Many of their competitors went cap in hand to landlords
The "Soros" investment although welcome was probably an independent decision by his UK small investment vehicle
Makes sense to have some exposure to the London market
Well " microanlysis of branches " If they aint selling them or gaining fresh instructions they arent making any profit
Foxtons are no longer cutting edge more"pipe and slippers "
Thanks Raleigh - hopefully over the worst of the hiatus. And perhaps of more relevance for short term sp movement (rather than a certain individuals micro analysis of branches) is whether Soros' vehicle increases it's stake.
28th. July.
Trading since since re-opening our branches
During the 8 weeks following the re-opening of our branches on 1 June 2020 we have seen steady improvement in activity across key areas of the business:
· Good recovery in lettings applicant numbers, listings and commissions, with lettings commissions over the 4 weeks of June down 12% and over the 4 weeks of July down 3% against the prior year.
· Sales commissions over the 4 weeks of June were down 44% and over the 4 weeks of July were down 32% against the prior year. The sales commission pipeline has strengthened since re-opening and is now broadly in line with last year. Short term future sales activity is further supported by the Government's Stamp Duty relief effective from 8 July 2020.
And there is the letting side of the business. We shall see.
I have no idea where Foxton's stands but one perhaps has to consider commission charges as well as numbers.
'With 27,000 properties sold so far this year, London isn’t home to the most transactions of all regions. However, the higher fees charged means that the capital does top the table for estate agent commission so far this year, with over £246m earned in the city alone.'
https://www.propertyreporter.co.uk/business/estate-agents-cash-in-on-property-market-boom-with-nearly-1bn-in-commission.html
Foxtons sales although picked up like everyone else have largely been disappointing .Many agents have been recording record sales .That certainly hasn't been the case at Foxtons where sales in the last 60 days total have been 383
That is just over 5 per office sufficent to put petrol in the neggies liveried cars
With further lockdowns expected and a tarditionally quiet period ahead in any event looks very much like they will be gnawing away at the tidy sum in the bank
Very much a weak hold