UK Edition
Foxtons replaces finance chief as 'very challenging' London market thwarts sales
Foxtons has parted ways with its finance chief after a decline in first quarter revenues as the estate agent battles a “very challenging” London property market.
Mark Berry, chief financial officer of the upmarket estate agent chain, will leave Foxtons “by mutual agreement” at the end of July but step down from the board on June 24.
He will be replaced by Richard Harris, who worked for more than a decade in senior finance roles at Marks & Spencer and was most recently financial controller at Laird, the electronics and technology business.
Shares in Foxtons fell more than 5pc on Monday to just under 57p.
Revenues from property sales fell 13pc year-on-year in the first quarter as the capital's struggling property market made for “very challenging” conditions.
“Sales volumes continue to be at record low levels and ongoing Brexit uncertainty is impacting consumer confidence,” the company said ahead of its annual shareholder meeting later on Monday.
Foxtons warned in February that it faced a “prolonged” downturn in the London housing market as it reported its first annual loss since becoming a listed company.
Revenue from the lettings business was up slightly on the same period last year, which the estate agent hailed as “progress following the initiatives implemented in 2018”.
The whole sector has suffered amid a decline in home sales over the past 18 months but Foxtons has been particularly hard hit because of its focus on relatively expensive houses in London.
Rivals Countrywide and LSL have been shutting dozens of high street stores as they battle cut-price competition from online rivals.
Mr Berry will receive three months' salary as a notice period payment and in lieu of any bonus earned for the 2019 financial year, the company said.
Foxtons also announced that Alan Giles would join the board next month as a non-executive director. Mr Giles, who has held a number of executive and non-executive roles including running music retailer HMV, will sit on the company’s remuneration, audit and nomination committees.