Countrywide is to “monitor” its shares in Zoopla.
It says, in relation to shareholder returns, at the end of yesterday’s trading statement: “In the meantime, we will continue to monitor our options with regard to our current holding in the Zoopla Property Group.”
At Zoopla’s float last year, Countrywide offloaded a 2.2% stake in the portal worth £20m, but continued to hold a 4.1% stake.
Today that stake is worth some £40m.
The £20m originally cashed in was paid to Countrywide’s shareholders.
The possibility that Countrywide might sell more – or even all – of its shareholding in Zoopla comes at the end of yesterday’s trading update, which saw Countrywide’s own shares plummet.
Under the heading “Shareholder Returns”, the update says:
“The Group’s five year plan requires an increased level of investment to deliver significant EBITDA growth and enhance shareholder returns.
“The Group’s normal dividends will, however, remain unchanged at 35-45% of underlying profit after tax.
“For the financial year ending 31 December 2015, the Board intends to maintain the total ordinary dividend at the previous year’s level of 15p per share.
“It is envisaged that the payment of special dividends will be reintroduced in 2017 and in the meantime we will continue to monitor our options with regard to our current holding in the Zoopla Property Group.”
It is the second time within weeks that Countrywide has raised the possibility of selling Zoopla shares.
In a presentation to investors, it said that no special dividend is “currently planned in 2015 or 2016 except in the event of further sales of Zoopla shares”.
Zoopla’s share prices fluttered slightly downwards yesterday by 1.38%.
Zoopla has a market capitalisation of just over £1bn.
One City analyst we spoke to yesterday said that if Countrywide were to sell further shares in Zoopla, that could be perceived as bad news for the portal. But the analyst suggested that Countrywide might be wanting to wait and see how OnTheMarket performs before making a decision.
See also next story.
Comments (34)
At the risk of boring myself the_message….. I have no doubt that myself and many other OTM Members have left OTM to develop over Year 1 with the intention of reviewing that development at the end of Year 1.
Members tinkering along the way in Year 1 would be a distraction however just like any employee The OTM Board will face their review on 26/01/2016. Ric & others have fairly stated about change now or along the way however, personally, I felt/have been happy’ish to leave The Board to it because it is Year 1.
There have to be explanations/changes/new strategy etc for Year 2…. however I don’t think a member revolt is required as there are many, many talented individuals/businesses amongst the OTM Membership. I would personally like to see Board related groups from across the UK Feeding back into the Main Board to provide a widespread/yet targeted vein of feedback/ideas…. however not just for political correctness or as a pat on the head to the OTM Membership!…… nor to have folk sitting in a hotel meeting room congratulating themselves that they are in some sort of privileged position. The OTM Board must take the Final Decisions however they clearly must listen to their Membership….. or face the consequences of isolated decision making.
I more than most have an enormous gripe with OTM related to its launch and our business….. I lambasted them, their management, Ian Springett, my Rep because of a farce that unfolded, however I NEVER lost faith in the BIGGER GOAL….. delivering a Portal which focused on the future of the real estate agency industry!
So, Year 1……. still here!…… problems to solve…… membership to grow…… change required…… solid explanations required….. and a membership to listen to and act from…… if that happens then Year 2 offers real potential. If not…… The Board will have failed their Membership!
From where I’m sitting I take the view that whatever portal turmoil develops with The Duopoly it emphasises to me that the Estate Agency Industry is, on this occasion, actually ahead of the game by having OnTheMarket.com, its own portal that is focused only on the property industry and not subject to the demands or unrelated strategies of partners/shareholders.
There almost a sense of passion in the_message comments…. however I’ve yet to figure out where that passion is really directed?
Sure OTM as a portal is NOT perfect at present however why would it be?…. it’s growing and change will come no doubt, from its members who will have to see their views being listened to and acted upon….. and some of those helpful portal features will no doubt appear.
Zoopla hoisted its portal flag when it acquired uswitch…. it’s going in a different direction, trying to harness all that data that agent have provided with the visitors browsing stock.
Rightmove still positions itself as the friend of agent and public alike…… however, for me, it remains the maggot of our industry….. quietly chomping away from the inside doing immense damage that we real estate agents cannot simply ignore because we cannot see it happening!
If any real estate agent continues to have a gut instinct for our industry then it must be saying…. back OnTheMarket.com …..for the future of our industry.
It would make sense for Countrywide to consider selling their remaining stake in Zoopla.
Both Zoopla and Countrywide are in the process of changing their business models and I can’t see why Countrywide would consider continuing with Zoopla as a long term partner.
Besides, Countrywide (after their last set of results) could probably do with the money to invest in their re-structuring.
You can picture the Countrywide touting letter now…
WHY DOES YOUR AGENT NOT USE THE 2 LEADING PROPERTY PORTALS RIGHTMOVE & ONTHEMARKET!
Shame on you PIE. Becoming a spin storyteller. Fortunately I can’t imagine many market brokers pay a blind bit of notice of some estate agency rag!!!
More notice than they will likely pay you
Run Forrest Run!!!!
20,000,000 s p e r m and you were the quickest?
Oh come on grump is that the best you can do.You are depriving some poor village of its idiot
It’s over jm, there is no comeback to that line (especially the village idiot one) you’ve been owned, move on
Yay you win Grump. On your way now
SPEAKING OF BEING “OWNED”…
I am sorry, Ros, Nick and John for breaking posting rules – I know it’s verboten to post links – but anyone wishing to see a certain “Property Expert. Top 50 London Innovator. Financial Times Global Disruptor” being handed his @r$e, sliced, diced and stuffed into a Netto carrier bag should have a deeks here:
http://bit.ly/1l9aoV1
Trust me… it would be rude not to!
Advice – do not view while drinking coffee, tea – or any liquid that could cause catastrophic keyboard damage! ;o)
Ha! Yup, def owned 🙂
You see, Gump – we DO agree on something at least! ;o)
Brilliant. More please!
With respect EYE reaches the customer audience of Zoopla, that is far more important than the city or market brokers.
This is another wheel coming off the disruptor project started in January 2008.
It is unlikely that the retail focused executive board will not understand the negative, competitive affects of Zoopla on their business but they will understand the trend line graphs that indicate now is a very good time to take a profit on the shares.
About time. They look too have given up flogging that dead horse. Now is just the right moment for all the corporates to see sense and invest in OTM. Without them Hoopla’s property numbers will shrink and shrink.. This is not the beginning of the end but it may be the end of the beginning.
Ill just leave this here….
http://www.propertyindustryeye.com/countrywide-to-launch-an-online-estate-agency/
And ill leave this underneath it ….
http://www.propertywide.co.uk/countrywide-services/estate-agents/
Newsboy, I would love take the time out of the day to explain why there is not even the remotest chance of the largest estate in the UK that runs its own property portal, plans to start an online estate agent and has its own new homes developer would invest in a portal that run by its competitors,bans other portals, new homes developers and online agents but i’m very busy currently teaching some cheese how to swim
“Higgerty, Haggerty, Hoggerty Hi” ?