Estate agent Foxtons (LON:FOXT) saw profits dive over 50 percent the course of 2016, impacted by a slowing housing market in the wake of the EU referendum in June.
Revenues at the estate agency fell 11 per cent in the 12 months to December, dropping to £132.7 million. Pre-tax profits fell dramatically, down from £41 million in 2015 to £18.8 million in 2016.
Revenue from lettings took a minor hit over the year, falling one per cent to £68.3 million, with sales revenue falling 23 per cent to £55.5 million.
However, better news for investors came in the form of a 7 percent rise in revenue from its mortgage broking business, to £8.9 million. The agency also opened a further seven branches last year , including two in February of this year, taking the network to 67.
Despite claims that the Brexit vote has yet to have any real effect on the housing market, Nic Budden, CEO, attributed the poor results to a notable slowdown in London. He said:
“Last year’s London property market was severely impacted by an unprecedented sequence of events with changes to stamp duty and the EU referendum vote leading to a substantial reduction in property sales transactions, especially in Central London.”
However, he reiterated that the estate agent has plans in place to navigate the challenging environment:
“Central to our strategy is our determination to deliver the very best proposition to our customers, delivering the highest levels of service through our excellent people, technology and network of single brand branches to ensure we secure the best results for our buyers, sellers, tenants and landlords.
“The launch of MyFoxtons, a sophisticated online portal for landlords and vendors in 2016, with an equivalent for tenants and buyers on the way, are exciting steps as we continue to evolve our offer, recognising the changing needs of our customers and the sales and lettings landscape”, he concluded.
Foxtons shares are currently trading down 1.27 percent at 97.00 (0848GMT).