Countrywide’s share price starts the week at a new low after the shares lost a fifth of their value in the last two days of last week. It has also been announced that another senior figure in the organisation is to leave for a role elsewhere. Kate Brown, in charge of HR, has been with Countrywide just under three years.
All eyes will now inevitably be on chief executive Alison Platt.
Platt is said to have sent a confidential ‘things will get better’ memo to staff a day after the trading update was published, which warned that reaction from the markets and shareholders would be “challenging”.
She apparently said that all the company’s actions had been aimed at regaining share “and back to winning”. She said that through delivering the company’s plans, Countrywide would return to good health and profitable growth.
She thanked staff for their continued support.
Shares start trading today at 106.8p, having briefly touched an all-time low of 104.2p on Friday.
At close of trading on Wednesday, the shares had been just over 135p.
After Countrywide’s unscheduled trading update on Thursday morning, warning of a drop in revenue and profits, the shares fell that day and on Friday.
Countrywide, the UK’s largest agent, warned that EBITDA is expected to fall from £83.5m to £65m.
Total income in the sales and lettings business for last year is expected to be circa £360m, down 14% on 2016.
Countrywide’s preliminary results are expected to be announced on March 8.
Meanwhile, Countrywide has confirmed that group human resources director Brown is leaving.
A spokesperson said: “We can confirm that Kate Brown will be leaving Countrywide at the end of March to take a new role outside of the business. During her time with us Kate has made a significant impact on the business and we wish her well.”
Brown joined from healthcare provider BUPA as did Platt before joining Countrywide. Joining in March 2015, her name still appears on Countrywide’s executive team as the only other senior woman apart from Platt herself.
Comments (19)
Tony Wainwright Cornwall and Devon, and i don’t have fake facts. Oh forgot Nick Freeth who was also making money till he was made redundant. These people left a vacuum and nothing to do with Platt. As i said previous incumbent.
I can give a list as long as you like of good people “making money” keeping the share price up who felt undervalued and frankly embarrassed by the situation that they found themselves in you clearly have a chip on your shoulder about your redundancy and I can understand that but to blame people who were making money and overseeing increased profits and a share price higher than the float as opposed to someone who fundamentally changed the direction of the business and alienated all those that weren’t made redundant into leaving is blinkered as I see it.
I have no idea about the mumbo jumbo you have just said. 5 most were disposed of for no reason. Of course I felt passed but no chip as I worked with agents and knew they were not bright now a retired millionaire so I don’t care.but Alison is not totally to blame
Well from nothing to do with Platt to “Alison is not entirely to blame” was probably about as far as I was going to get you to admit so thank you.
Couldn’t agree more with ARC well said.
Thank you
I think you have just echoed what i said but presumably didn’t really take it onboard. Wainright, Powell, Manzi all made great g profits and were very much part of the record 110 million pound profit era. All gone having been made redundant by the previous incumbent The replacements who knows, but you won’t replace that experience in a hurry and they were ousted by the previous management not Alison Platt. As for the share price well if you do any serious investing you will know that it wildly fluctuates and even Mr Neil Woodford is struggling currently but if the business is broken,s broken and once it all comes home to roost she will be in the seat, she inherited a shell. As for deadwood, well I took over a subsidiary that was 29th out of 29 and ran it in the top 3 year after year but still got the elbow as did another FSD who was replaced by an Estate agent because the FSD knew nothing about agency, which of course was odd as he was making money.
Funny thing blinkers they hide you from reality whilst focusing you and what you think.
Well I only know of Lee and he was still very much there under Ms Platt and only left last year not made redundant by previous incumbent so one fake fact means there’s probably others.
As for share price fluctuation I think taking over a business at £6 down to £1 is incomprehensible and not possibly attributable to volatile stocks.
I actually feel for Alison Platt, after all she has inherited a decimated business from the previous incumbents.
Local MD,s that have made profits for years have been made redundant along with FSDs. in turn this has resulted in staff that are recruited from a distance and remote management.
The online part was a great opener to get more feet throughout the door and as we know more vals = more instructions.
The training used to be carried out by MD,s or FSDs but now it is with Trainers who have written a course based on ……well its not experience thats for sure.
If a job is not done properly then its not her fault its the line managers fault for either not supervising or not educating/motivating.
Currently some of the regional managers are watching 35 plus branches so contact time is minimal. They have raced to the bottom in cutting costs internally and consequently standards have fallen.
The 2 Doctor deaths as they were known did this not Alison.
Actually see inherited a business with a share price of £6 now just £1 and year on year increases in revenue breaking company records in the process. Subsequently she has alienated those who know how the business works and brought in people with no clue to manage them eg lettings branch managers as Retail Directors looking after area managers with 25 years experience in the business now reporting to someone who’s never sold a house. I know this I was there I know you weren’t because you left or were pushed when the deadwood was culled post Harry and the jobs for the boys brigade.
Sadly the nightmare ahead for many high street agents is mainly self inflicted.
The desperation for listings over the last few years has meant that fees have been slashed to a ridiculously low level. Some agents in our area are charging 0.5-0.75%. There is no possible way that you can offer the service you did 5 years ago charging these sort of fees. You’re definitely not going to be able to pay for the quality of staff needed. The earnings just won’t attract the type of people we need and we’re going to see an exodus from the industry with good, experienced motivated salespeople being replaced by “receptionists”. Don’t we all long for the days when it was 2% sole, 2.5% multi? How the hell did we ever let it get like this? It’s certainly not down to the online agents with just a 7% market share.
And of course there’s the Rightmove monster milking us all and to a large extent dictating some of our futures. Makes you wish OTM had worked out doesn’t it? But again, that’s all down to us. If we had collectively worked together as an industry and talked then maybe we wouldn’t have the problems that we’re having.
We’re going to spot a lot more charity shops in the high street over the next few years.
How right you are sir. It’s a myth that the fee cutting is all of the back of the on-lineers. We hardly see any on-liners on our manner but we too have agents ‘starting” at .5% or .75%
I think the 6 years of sluggish market have drained many in the industry of their energy, belief and power to persuade. Senior management need to take stock of what support in this regard, they are offering their sales staff.
Estate agency is still a great place to have fun and earn well, if you approach it positively
The issue goes back to 2008 – Experienced, good staff that left companies were replaced by inexperienced, cheap youngsters. They have the opinion properties sell themselves on portals. They have no experience or ability to differentiate themselves on anything other than fee.
This would not be a problem if 1 or 2 in an area are doing this but it is the majority of agents.
This is fine the whole time a market is rising as when you look at the £ you receive from the % you charge there is little difference. The problems come in on a stagnant or falling market. I believe the market will stagnate over the next 12 – 24 months, margins will be cut into further by the agents only able to compete on fee.
The well run agents who have cut their cloth accordingly over the last few years and have a strong offering not based solely on fee will prosper.
” We’re going to spot a lot more charity shops in the high street over the next few years. “
Sadly Mr Lister, some Estate Agents are already Charity Shops with their Charitable Fees!
Ms Platt and Co deserve to be placed for sale in a Charity Shop! Having walked past one of Ms Platt’s “Fees from £795!” Sandwich Boards, outside a Countrywide Group High Street Office…. it’s that approach that helps Drive nails deeper into our industry!!!
…..and don’t get me started on the “All You Can Eat Onliners” Purpleburgers, eEwotsit & the other Slimeliners!
As is often said here… keep working hard, don’t slash your fees… provide your best service, look after your clients best interests and justify why clients should pay a fair fee because they are actually getting a real Estate Agent and not the MineArtists that seek to take the money and run!
Right…. I’ve used up my week’s allocation of exclamation marks! …..can anyone lend me some?
While I remember “The NAEA”? ….does it actually do anything for our industry?
Rightmove? How do they justify shafting us each year whether fair market or fowl? …..Oh that’s right…. because they can!
OnTheMarket? …..I’m still paying money every month for this never-ending Online car crash! …..when oh when is all this cr*p going to flush itself down the portal loo because every single day that it sits in silence doing sod all means I am effectively paying back some sort of MoneyLender who actually borrowed money from me! …..and yes, I know, they’re spending more of my money defending themselves again….. WoeOnTheMarketisme!
A very belated Happy New Year to one and all from GrumpyGPL
The simple truth is that consumers are slowly but surely questioning the value for money offered by the standard agency business model.
Roughly 4% of homes come to market each year and it is only at this juncture that the home sellers start to examine the real cost of selling and the true value offered by the various players in the market.
For the typical agency profits are modest but cost to the consumer is relatively high. What is needed and indeed what will almost certainly happen is a period of consolidation within the industry facilitating a reduction in duplicated costs such as; premises, non-essential back room staff functions, Rightmove memberships, cars etc. as consumers demand keener pricing and better value.
In short, the standard industry wide business model employed within 96% of sale transactions will have to evolve. Evolution will see improved productivity (currently an average agency only completes on circa 76 transactions a year), a leaner cost base, some outsourced services and/or roles, more shared services e.g. shared premises costs and a much greater use of technology to semi automate mundane low skilled tasks. As we all know the latter point has already begun.
If the transition is managed effectively the newer leaner model will operate at a much lower transactional cost to the agent and will still offer the same or better levels of profit per transaction. A win-win scenario for agent and customer alike.
We have been operating a ‘newer leaner model’ for three years now, and are currently working on cost and time saving business generating software. Anybody who wants to know more can contact us on the Ideas Network
in@agentv.co.uk
I doubt very much that corporate and regional agents are making any money at all from house sales alone (apart perhaps from the very top end specialist agents)
Referral fees and tenants fees are propping most up – the writing is on the wall for many this year – especially those short of cash to spend on marketing.
Spot on.
We are looking forward to this year unlike many.
The SP will go lower too. The £195m debt isn’t going away. Platt is now operating with the bank’s hands around her neck..There is only so much bad news they can take .The much heralded fixed offer seems to have died a death. They failed to sell LSH last year and despite lending her squillions to buy income,revenue has fallen through the floor.
The lenders find themselves in a bit of a dilemma. The profitable bits B2B, financial services and conveyancing are keeping the ship afloat but the sale could bring in a big chunk of the debt .
The danger is of course that the drivers of the profitable business become more disillusioned with the BODS that they plan their departure taking a big slice of the business with them leaving the banks holding the baby
The minimum required is regime change otherwise this is going to disassemble very quickly