Foxtons invests in technology and brand amid ‘toughest’ ever trading
London-based property agent, Foxtons said it’s continuing to make investments into its brand and technology platform, despite the toughest trading conditions the firm’s ever seen.
In a trading statement issued on Thursday, the company said group revenue for last year was around £111m, sharply down from £118 the previous year.
Foxtons said the fall was driven mainly by the fall in sales volumes alongside planned increases in operating expenses as it invested in its people, technology and brand.
Last year the property agent shifted investment away from rolling out more branches and onto developing its brand. It then planned to embark on a series of brand building initiatives to reinforce our proposition amongst potential customers, buyers and tenants.
The company also made a £1m investment in Propoly, a young company providing business to business white label digital estate agency software services, currently focused on lettings, in 2018.
London’s tough market, exacerbated by uncertainty surrounding Brexit, means the company has yet to see the fruits of these investments in one of the difficult years the agency has faced.
"2018 was one of the toughest sales markets we have ever had in London with transactions falling from last year's historically low levels,” said CEO Nic Budden.
“Considering this, we have delivered a solid performance and taken steps to ensure the business is best prepared for these conditions through prudent actions on cost and enhancements to our proposition.”
Foxtons is listed on the London stock market and its shares were trading 0.5 per cent lower at 53.2p.