Foxtons has revealed it will take “all the necessary steps” to help persevere the “long-term capacity of the business”.
In a trading announcement released earlier this morning it said that trading for the first 11 weeks of the year had been “in-line’ with expectations. However, it now expects the “significantly weakened economic outlook” to have a negative impact on its full-year results – adding that it is too early to predict what the full impact will be.
The company added that despite this, it is in a “strong position as a market leader” and continues to manage a strong balance sheet.
It also said it has now “fully drawn down” its £5m revolving credit facility giving it a “substantial” £21m cash balance and is looking at a “number of actions” to preserve cash.
The statement read: “The business performance in the first 11 weeks of the financial year has been in line with the board’s expectations and consistent with the update given at the full year results at the end February 2020. However, the Company notes the necessary defensive measures taken by the Government affecting London and the UK along with the significantly weakened economic outlook.”
“It is too early to predict what the impact of Covid-19 will be on Foxtons’ full year results. However, we do anticipate an inevitable material disruption to trading in the coming months.
Foxtons is in a strong position as a market leader and continues to manage a strong balance sheet. “
It continued: “The group has fully drawn down its £5m revolving credit facility, resulting in a current available cash balance of £21m. The board is currently evaluating a number of actions to preserve cash and will take all necessary steps to balance these measures with preserving the long term capacity of the business.”