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“The FTSE 100 begins the week in uncertain form as investors await key decisions on monetary policy in the UK, US and Japan this week,” says AJ Bell Investment Director Russ Mould.
Foxtons
“Today’s numbers from London-focused estate agent Foxtons reflect a continuation of the negative trends the company has been facing of late.
“The lettings business is holding up ok but the sales arm is really struggling, down nearly a quarter year-on-year, which given the state of the capital’s property market should come as no surprise.
“The one saving grace for Foxtons is a very solid balance sheet, which provides the capacity to ride out the soft market conditions, at least for a time.
“However, the losses the company is beginning to rack up are having an impact. The net cash position fell from nearly £19m at the beginning of the year to just short of £12m as at the end of June. Foxtons needs market conditions to improve, and soon.”
Clipper Logistics
“Clipper Logistics has enjoyed a pretty strong run since its IPO in 2014. Plugged into the new retail world, handling warehousing, delivery and returns services, the company has chalked up impressive growth figures.
“However, online retail is not immune from fluctuations in the economy. So although the company still achieved double-digit growth in full year earnings, the numbers were some way short of what was expected.
“Combine this with a lofty market valuation and today’s big slide in the share price was almost inevitable.
“Executive chairman Steve Parkin reference in the results to the ‘wider forces affecting the UK retail sector’ looks an attempt to manage expectations.”
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