Foxtons Plc (LSE:FOXT) shares fell 5% to 442.4p after the London estate agent struck a cautious tone on its sales outlook, warning that housing transactions are likely to remain muted through the end of the year.
The company said uncertainty surrounding the delayed Autumn Budget has caused potential buyers to hold back, leading to “a subdued sales market” and creating a risk that fourth-quarter revenue could fall short of expectations.
The update overshadowed what was otherwise a steady third quarter.
Group revenue rose 3% year on year to £49m, helped by another strong performance from lettings, which grew 5% to £33.4m and now accounts for nearly three-quarters of total income.
Sales fell 7% to £12.5m, while financial services jumped 37% to £3.1m as more clients refinanced existing loans.
Foxtons said full-year adjusted operating profit should land between £21.5m and £23.2m, broadly in line with last year’s £21.6m.
Chief executive Guy Gittins said lettings continued to underpin growth and recent acquisitions were performing well, but acknowledged that “some buyers are adopting a wait-and-see attitude” ahead of the Budget.
Despite current headwinds, Foxtons said it remains confident in its medium-term prospects, expecting sales volumes to recover once economic clarity returns.
The shares fell 2.9p to 53.5p. Panmure reckons they are worth 103p, Peel Hunt values them at 62p and says 'hold'.