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Certainly seems their is an effort to stop it from breaking through 40p which irratatingly is my b/e point.
Wouldn't be surprised at all to see a bid here in the coming months as the mortgage drama starts to abate. Looks cheap as chips on a forward PE basis and only going to look cheaper as time progresses.
At todays price an offer of 50% premium would be a take out 180m. lets say the buyer has to borrow 100 at 10% is 10m a year for a business that will soon be earning 30m or 20m net. On a PE of 15x gives you a value of 300m makeing you a return of 120m on your initial investment of 80.
PE?
120m market cap, no debt so they can load up, 20m profit per year easily next year, 30m in the next couple of years. Sounds like a PE wet dream...
Yep, another decent set of numbers reported in the interims this morning, here's the opening extract from a story published on the Negotiator website earlier ;-
'.........The bad old days of disastrous results for Foxtons are behind the company as both a super-hot lettings market and a revived sales team have pushed revenues up by 9% and profits by 10%, its latest results show.
Revenue increased by £5 million to £70 million year-on-year while operating profit increased by £600,000 to £6.8 million....'
And the article in full :-
https://thenegotiator.co.uk/foxtons-finally-feels-the-gittins-gold-as-profits-surge-10/
And again just like the reporting of those excellent full year numbers back in March, don't expect to see the stock go on a massive run upwards.
A lid at 40p or thereabouts will be the market price going forward that is until those waiting in the wings and keeping an eye on the fortunes of Foxtons finally decide to declare their hands.
Keep adding on those manipulated market dips !!!
Mr Market gives it a complete meh...
Great rns today hoping for an uplift
Not bad considering the current UK mess.
Looks to me like a £15m PBT on a FY basis and close to 5p eps. So even at a miserly 10x gets us to 50p and on a more positive forward outlook at ye would get you to 75p.
Just a follow up to Redwine's last post, here's an extract from Landlord Today on-line with regards to Foxtons :-
'.......June 2023 saw almost 35,500 new listings, which was over 4,000 listings more than last June, according to Foxtons’ analysis of Zoopla data. Over 20 per cent of new instructions, year to date, were within Westminster and Tower Hamlets.'
The article in full :-
https://www.landlordtoday.co.uk/breaking-news/2023/7/foxtons-figures-show-rents-and-demand-dip-slightly-in-london
Average asking rents for new tenants in London shot up to a new record in the second quarter as rampant demand and higher mortgage rates prompted landlords to hike prices. Tenants in the capital are now being asked to pay an average of £2,567 ($3,310) a month — up 13.7% from a year ago and by 28% from the same time in 2019 before the pandemic.
Remember these guys, well quite a few market commentators have either forgotten about these lot or maybe just haven't bothered to look into their latest offerings of late.
Over three years ago Foxtons announced a tie-up with this on-line auction company and whilst it helped sales initially albeit slightly there wasn't a great deal of coverage especially as the property market was pretty flat back then, interest rates were near rock bottom and it was only the first-time buyers were keen in the market hoping to take their first step onto the proverbial property ladder.
Here was the announcement :-
https://thenegotiator.co.uk/foxtons-online-property-auctions-bidx1/
Now fast forward to July 2023, there are currently over 70 properties listed for the next auction later this month so far, last month around 27 properties were listed with over half of them sold. And these properties are not your 'rack and ruin' properties of old that some people think of when you talk about property auctions and hoping to bag a bargain, these are 'quality' properties that you would normally see in an estate agents window.
Take a look :-
https://www.foxtons.co.uk/properties-for-auction/london#map=51.49504090104112,-0.15784800000000931,11|layers=|location_ids=1
Okay, so what does this tell us ?
Well firstly, there are now sellers out there that want a quick exit and are prepared to pay the hefty auction commissions rather than waiting for potential buyers trickling in one by one over the Summer months which is always a very quiet time for the market in general but also want out before the inevitable downturn come the Autumn and Winter months and the inevitable rush which we will see once people are back from their holidays.
Secondly, the amount of properties going to auction has more than tripled since last month and judging by some of the pictures on the Foxtons website, there are quite a few 'empty' looking properties being advertised to sell, which to me suggest that they could have been rental properties as I mentioned a few weeks back. I.e. Landlords looking to exit the rental market !
Again all good for Foxtons.
And as the Summer months are here once again there will be a new flock of overseas students looking for rental accommodation whilst they study in London from September/October onwards, expect more good news from Foxtons on the rental front as well.
Its ching, ching all the way !!
That was the old regime’s last gasp of a master plan, and got quietly dropped. You’re right tho, this is no longer a growth stock
What happened to the master plan to grow outside of London and use the brand-rinsing the old habits isn't enough
Dog of a company dog of a share, U.K. property market heading back to 2008-13 profile, the brexit basket case will never cope with parabolic rates and a recession at the same time, expect this dogshxt to go to about .12p at the end of this or more likely taken private by bondholders and management for a couple of pennies. Terminal.
Down again, we're now closer to the lows of the year than the highs !! Fine by me, just picked up a few more.
Keep calling them down and I will gladly pick them up !
:)
And there's more, here's a snippet from the Landlord Knowledge website this morning :-
'UK Housing Market Revives To Pre-Pandemic Levels, Say Property Experts..............'
'The UK property market has made a full recovery from the pandemic slump, according to recent data from Rightmove. Interestingly, the recovery in property sales is most evident in London, where agreed sales are now 11% higher than they were in March 2019.
Matt Johnson, Area Director at Lettings and Estate Agent JOHNS&CO, says: “Data from the first quarter of this year revealed that new offers have surged by 85% compared to the same period last year, and we’ve seen our agreed sales grow by 33%.”'
And here's the article in full :-
https://landlordknowledge.co.uk/uk-housing-market-revives-to-pre-pandemic-levels-say-property-experts/
Another month or so and we'll see if its hitting the bottom line
Nice article this morning on the Estate Agents today website, 'Foxtons has its mojo back !'..............
https://www.estateagenttoday.co.uk/breaking-news/2023/6/foxtons-has-its-mojo-back--claim
In my last post I mentioned about the affordability issues that many homeowners are now facing and going forward as we move into a much higher mortgage rate arena. The UK government has no intention of backtracking on interest rate moves until next year at the earliest as its a general election year and as the Tories will need very vote they can get, no doubt they will tell us all that inflation has peaked and thus interest rates can come down albeit slightly.
So expect rates to peak around 6-6.5% before coming down to say 5% for the next few years.
I think we all know what this will do to the housing market and already we are seeing more sellers coming to the market and existing listings being reduced in price, all signs of an accelerated sales market after years of being in the doldrums, again all good for Foxtons !
What will happen as a result, well I mentioned that affordability will still be a major issue for the average buyer and banks are very reluctant to lend in a downturn, so that just leaves wealthy landlords, hedge funds and banks themselves as buyers with a few wealthy individuals in the mix.
And what will they do with these properties that the sellers can't afford to maintain, yep they will be back on the market but as rental properties, we may even see buyers renting out the same property back to the original sellers so that they don't have to move especially if they have huge equity in the property. Either way, we are not returning to the 'old days' of bank repossessing properties and flogging them off at any price.
This will also have a knock on effect to the rental market and expect existing rental clients to enter into longer term rental contracts as the housing market enters its downturn.
This is a mad link from the BBC website, its defo worth a read :-
https://www.bbc.co.uk/news/uk-england-norfolk-65761233
Numbers are indeed impressive.
Gittins 30m mid term ambition doesn’t see, so ambitious in the comparison although I suspect he’ll get there quite quickly.
Impressive
https://propertyindustryeye.com/dexters-eyes-further-expansion-and-ambitious-growth-plans/
When will Oakley be looking to cash in some chips and go for a listing ? Maybe looking to reverse into an existing vehicle
A double X. Foxtons/Dexters
Now there's a thought.
All this good news but still can't hold above 40p!
And over 60 job vacancies currently advertised across all departments as additional resource is put in place across the business.
Sales are steady at a time of year which is normally busy yet with all the headwinds highly respectable .
Don't expect too much over the next few months .
Foxtons are holding their own
Canary Wharf is an interesting example with a hefty inventory .
At the beginning of the year 170 sales listings and 71 lettings .An inventory which has gradually grown during the year .A round 35 under offer/ sold STC in January with 48 today.
Today sales listings of 212 sales and 112 lettngs .25% of curent sales instructions have been on 6 months ir longer ,No real change there
Hi Major, Foxtons are well positioned on all fronts, a booming rental market with now in excess of 30,000 rentals on their books with an average rent in London now well over £500 a week. Do the sums, the numbers are mind boggling !
Secondly, for mortgage holders past and present as I mentioned a few days back, Foxton's in-house Mortgage specialists (Alexander Hall) will clean up especially now as we move into a higher interest rate environment. You have to remember quite a few mortgage holders will see their 1-2% mortgage deals expire soon, if not already ! Around 2m UK mortgage holders are due to re-mortgage this year as fixed rate deals expire.
And this brings to affordability issues, many mortgage holders do not want to lose their homes at any cost but inevitably there will be some that have no option but to sell or downsize as the cost of owning a home becomes out of reach of many especially at the lower end of the earnings scale.
And finally we have had landlords over leveraging on rental properties for income, so expect a few of those properties to come to the market now as the cost of those buy-to-let mortgages will see re-mortgaging rates of anything from 6-7-8 % even ! OUCH !!
So with regards to sales, I agree that we will see more properties come to the market, good for Foxtons but sad for those that have to sell their homes through financial difficulties.
5eights.
I keep randomly checking Foxtons branches Sales portfolios and over the last couple of months I would suggest there has been a noticeable increase in properties Sold and particularly Under Offer.
What they have also acquired are a significant number of new build listings (apartment blocks)
Letting I agree will do well if you can stop vendors selling
What about sales though -how’s that going-I heard upto a third down which is a lot
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