Alexander Hall posts profit for 2008
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Alexander Hall Associates has filed its annual results for the year ending December 2008, which show the brokerage made a £126,057 profit after tax for the year.
Its turnover however fell by 44% and was down from a profit of £4.8m in 2007.
Alexander Hall, which is owned by the Foxtons Group, was due to file its annual accounts before Christmas but only did so today.
As well as a turnover decrease of 44% from £15.5m in 2007, to £8.6m in 2008, its operating profit also decreased by 96.6% from £4.6m in 2007 to £155,000 in 2008.
It also shed seven advisers throughout the year.
In its accounts Alexander Hall, says: “It is unclear how long the current situation will last for. However, it is hoped that at some point during 2010 the problems will be resolved and the mortgage market will improve.
“The company’s overriding objective is to achieve attractive and sustainable rates of growth and returns through organic growth. The company aims to achieve these goals by investing in its employees. leading the market with a fresh and innovative approach to providing mortgage advice, and maintaining a strong financial strategy.”
Since the balance sheet date the main stakeholders in the business have agreed a capital reorganisation of the group.
A refinancing deal has been agreed by Foxtons’ owner BC Partners which hands control of the estate agent to its lenders. Private equity firm BC Partners acquired Foxtons back in May 2007, in a deal thought to be worth £360m to the estate agent’s founder Jon Hunt.
BC Partners is believed to have injected under £50m of new equity into Foxtons as its largest minority shareholder.
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Readers' comments (6)
Broon | 22 Jan 2010 12:56 pm
Hats off to Jon Hunt. He got out when the going was good. The same can’t be said for a lot of businesses.
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Anonymous | 22 Jan 2010 2:31 pm
That was for 2008, go knows what 2009 will look like.
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Anonymous | 22 Jan 2010 3:57 pm
Seeing a fair sized company decreasing profits such as this just goes to show that anyone involved in mortgages at the moment have, are and will be going through tough times
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Anonymous | 23 Jan 2010 7:18 pm
Obviously I would like to see them do well in 2010 despite the tough mortgage climate. Holding onto existing clients is difficult enough let alone increasing the client base.Lenders must do everything in their power to continue to put through attractive deals through the broker network. Also new legislation needs to be brought in to ban lenders raising their rates particularly when the BBR has remained the same or has been reduced. Also "get out of jail" clauses as in the case of the Skipton Building Society should be thoroughly scrutinised by the FSA before any contract is entered into by clients to prevent repossessions as a result of doubling of interest payments without notice.
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Anonymous | 25 Jan 2010 9:50 am
To anon 7.18 pm I have some questions:
1) Why should lenders do everything in their power to put attractive deals via broker networks. Surely that is reverse dual pricing and this has certainly been heavily castigated when it was in favour of the direct consumer.
2) What the heck has BBR got to do with rates. Lenders can't raise money based on BBR so why should they lend it based on BBR?
You remind me of the BDM who when asked how the lender could increase business replied "put the investment rate up and bring down the mortgage rate". Even when he was told that the lender would go under if it did that there was a 'dim' look on his face
Perhaps some basic business economics should form part of CeMap!
I would suggest that you look at lender;s profit performnaces during 2009 when you might just find out that we still have minimal profit margins. It's no easier for us than it is for you
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mr carrot | 25 Jan 2010 10:47 am
Alexander Hall's turnover dropped by 44% when comparing 2007 and 2008 turnover.
However, my company's turnover only dropped 27%. It is still quite a drop but not as bad as others it may seem.
I must be doing something right....
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