A collapse in pre-tax profits at Foxtons last year, from £18.8m to £6.5m, could have been far worse but for a series of cost cuts – mainly achieved through reducing headcount as people left and were not replaced.

Staff numbers were 1,170 last year, down from 1,337 in 2016.

One round of cuts saved £5.6m, while a second round in the latter part of last year was implemented, says Foxtons chairman Garry Watts in the annual report.

The extent of the second round of cost cuts is unclear, but he adds: “We have made progress aligning our cost base with market conditions.”

Those market conditions saw a 23% fall in sales revenue at Foxtons, and a £2.3m charge mainly because it decided not to open some branches.

However, the Foxtons annual report, issued yesterday, finds plenty of positives: the firm has no debt, it plans to pay shareholders a 2p dividend, and it has by far and away the most recognisable estate agency brand in London.

The annual report also makes clear the disenchantment Foxtons feels for the online agency model, hinting that its own staff have had to progress transactions where an online agent has been involved.

The report says: “The board believes that the emotional and complex nature of estate agency transactions means that it is unlikely that online agents will play a major role in the exchange of completion of sales or letting transactions without the involvement of an estate agent.

“Any market share gained by online agents is likely to be at the expense of traditional estate agents with low levels of service who compete on price.

“However, the challenge of online agents will be kept under review.”

Foxtons sees Brexit as a more serious challenge, along with high property price inflation, Stamp Duty, and the impending tenant fees ban.

Last year, Foxtons paid its chief executive Nic Budden a total of £914,000, including a basic salary of £550,000.