Foxtons will take ‘all necessary steps’ to stay in business amid coronavirus outbreak
Foxtons issued a trading update this morning advising that it will take “all necessary steps” ahead of the “inevitable material disruption to trading in the coming months.”
The estate agent reassured investors that the first 11 weeks of the financial year had been in line with expectations but warned that the “significantly weakened economic outlook” was likely to take its toll.
In a statement Foxtons said: “It is too early to predict what the impact of Covid-19 will be on Foxtons’ full year results.”
The company said it was in “a strong position as a market leader and continues to manage a strong balance sheet”.
It also told investors that “it has fully drawn down its £5m revolving credit facility, resulting in a current available cash balance of £21m”.
Foxtons said it will take a number of actions to preserve cash and ensure the long-term capacity of the business, although did not specify what they would be.
It added that it would continue to provide updates in due course.
Foxtons share price was up by 7.5 per cent in early morning trading, or 2.45p to 35.45p, albeit from a low base given the stock market’s recent turmoil.
It comes following profit warnings were issued by Mike Ashley’s Frasers Group this morning, as well as Marks & Spencers.