22 January 2015 – trading statement
A somewhat downbeat trading update has been released. The slowdown in volumes in the UK sales market in the fourth quarter of 2014 has been clearly evident in the level of house exchanges in both Estate Agency and London & Premier. Estate Agency recorded a fall in volumes of 2% following a third quarter result which was up 11% on 2013. London & Premier had seen volumes fall by 9% in the third quarter and this accelerated. The company has noted that buyers remain cautious generally and particularly in London. Athough Stamp Duty reform should be beneficial to the market in the long term it initially introduced more uncertainty in the Greater London area. The forthcoming General Election also brings uncertainty. Nevertheless, we believe the shares are a BUY.