Foxtons has launched a £3m share buyback following recent sales growth.
The London-based agency group has seen a significant increase in buyer numbers since lockdown restrictions were eased earlier this year, with pent-up demand and buyers seeking to take advantage of the stamp duty holiday introduced in July.
Foxtons said revenue in October and November was £14.8m, up 2% on the corresponding period last year,
The Foxtons board now expects adjusted operating profit to be between £1m and £1.5m for the full year. Last year, it recorded a £700,000 loss.
In April Foxtons raised £22m via a share placing to support it through the property market closure.
Restrictions were eased in May and Foxtons has now announced that its performance since the placing had been better than expected.
The company said: “We have a strong cash position which gives us flexibility to manage further Covid-19 disruption and is sufficient for our working capital requirements.”
Comments (3)
So on that revenue and industry p/e you should get your money back in 144 years…
Yes. That means if your single branch agency makes 100k profit its valued at £14.4 million in hedge fund language.
Nice
You would thinking going into 2021 – they would want to sit on the cash in the war chest in case things get a little tough. Something tells me in a 12/18months the board might regret this move
Strange move
You would have thought that the money would be better spent elsewhere on the day job .Improving their offer,incremental branch expansion or opportunities or buying in inventory if suitable opportunities present themselves.
Surely this is a better way of adding value only having raised £22m in April issuing 55m shares few months ago @40p and now buying back in at a higher figure in the market place .
You have to question the motives of the Directors ? It shows a singular lack of ideas
Furthermore we are heading into an uncertain future so keeping some hay in the barn to cover all eventualities sounds the most prudent option