StockMarketWire.com - Estate agency group Foxtons abandon its dividend after swinging to a loss Thursday as lettings performance was offset by ongoing decline in house prices across in London amid Brexit uncertainty. The company warned the challenging trading conditions was expected to continue in the current year.

The company also flagged a £16m asset write down owing to branch closures and falling house prices.

For the 12 months to 31 December, the company reported a loss of £17.2m. Revenue slipped 5% to £111.5m despite lettings revenue rising to £67.1m, up from £66m a year earlier.

The company blamed the downbeat report on falling sales volumes and planned increases in operating expenses.

Adjusted earnings (EBITDA) fell sharply to £3.6m for the year, from £15.1m a year earlier, that was above guidance of approximately £3m.

There company said there would be no final dividend for the year, citing poor performance.

The company said it recently closed six branches, taking its total number of branches in London to 61 branches.

'Looking ahead, we expect trading conditions to remain challenging in 2019. Whilst our sales pipeline remains at a similar level to the same time last year, the sales market remains very subdued with less visibility on exchanges proceeding,' Foxtons said.

'Our performance in 2018 was impacted by a further deterioration in the sales market, with transaction levels falling for another year from their already low levels. We are pleased with the lettings business and the investment we made earlier in the year helped to drive a good second half performance,' said Nic Budden, CEO.

'The outlook for sales remains unchanged with a range of factors, including political uncertainty, likely to contribute to ongoing low transaction levels in the short to medium term. There is momentum in the lettings business and we are pleased with how that business is progressing.' Story provided by StockMarketWire.com