In an exclusive interview with EYE, Countrywide executive chairman Peter Long has said he is happy and confident about Countrywide’s turnaround.
He said that the collapse today in the share price had been expected: “It was also going to be reset,” he said, “because we are at the start of a new capital structure.”
He emphasised that the £140m fund raise is fully underwritten by both existing and new shareholders, meaning that a meeting of shareholders will only need to rubber-stamp it for the money to become available.
Long said: “It is a massive vote of confidence, and we have raised more than we expected. It is a bigger show of support than we could have envisaged. I am extremely happy with that.”
He made it clear that Paul Creffield, the new group managing director, will be in charge of the turnaround, and that there will be no search for a new CEO.
Long, who is also chairman of Royal Mail, denied that he is “over-boarded”. He said: “My role is very simple. I am available to my business leaders 24/7. I do sometimes work seven days a week.”
Long also said that there would be no sell-off of any parts or brands of Countrywide. He said: “The plan is to build the business back to where it was in 2016.”
He said that Countrywide was an estate agency business, and not retail – “That is the biggest load of nonsense you ever heard,” he said.
Asked if the Alison Platt regime had been disastrous, Long said: “I do not argue with that.”
Paul Creffield told EYE during the same joint interview that he was “absolutely passionate” about restoring Countrywide’s fortunes.
He said: “This is a people business – and by that I mean our own people, and our customers.”
He said that a large number of talented people who had left during the Platt regime were now back, plus talented new recruits.
Creffield also said there are no plans to launch an online business. He said that if Countrywide did, in the longer term, it would be an investment in a completely separate business and not an online offering in the branches: “I never could get my head around that,” he said.
However, there will be new investment in IT which will go into the branches, making it easier for customers to track transactions and to book viewings.
Comments (13)
So if the chairman Mr Long knew the retail and online strategies were wrong – “I couldn’t get my head round that”, why as Chairman did he not contest it? Weak, retrospective individual.
Plus, the recovery plan, he knew there would be a fall in share price. OMG. It is at 18 pence for goodness sake!
You are in the wrong job sir!
Mr Codling will be reading this. The corporate finance boys like Jeffries don’t know the industry any better than us.
Any idiot could see that Platt knew nothing about property and it took Long 12-18 months to work this out. Atrocious judgement by the board in appointing both.
With £140m to pay off debt and for cash flow CW should be okay but I don’t believe it will stay the same shape – Hamptons or LSH or surveying or Slater Hogg would be very nice acquisitions.
Don’t rise to it, Mr Lawson is just being a troll; he doesn’t like that Mr Codling just bagged CW another £140m to put the business back on track. That it is an almighty blow (the 2nd this week) to investors’ understanding of our industry.
A lot of investment followed Woodford getting behind disrupting estate agency without fully understand agency. This crisis at Countrywide and all of the discussions at breakfast meetings, lunch and dinner will provide investors a long overdue insight into the industry and a reality check on their blind faith, fear of missing out.
I reckon the disrupters will fair much worse out of this than Countrywide; Countrywide stock can’t really fall any lower and could easily bounce back up above £1 where this will scupper anyone hoping for a big payout from a float and those invested in disruption will now be wondering what on earth they’ve got themselves into. The fear of being the last one invested in this idiocy will be much stronger than the fear of missing out!
>Countrywide stock can’t really fall any lower and could easily bounce back up above £1
Robert May has a working relationship with Anthony Codling.of Jefferies.
Do your own research before trusting investment advice, especially from those with a vested interest.
A bit like the Brucie Brothers, that’s rich
Are you disagreeing because you think falling more than 15p is possible or that you don’t think the Countrywide share price could easily rise above £1.
Perhaps you’re trying to let people know I did some work for Jefferies and attempting to insinuate wrong doing.
Anybody know what Jefferies have to say?
Between January 2015 and June 2016 they rated CWD a “buy” on 5 different occasions, All at a price above £3 a share.
I could be mistaken but I seem to remember them saying they were doing the best possible thing when offering the hybrid product.
Hindsight is a wonderful thing but best to always do your own research.
Im sure the Investors and long term holders are delighted. Let’s shift any blame on the previous CEO and not consider the boards decisions on borrowing and the buy back of shares.
The debt convenant breaches are why we are seeing the SP at 15p today, it’s a death spiral.
Hi Dom
Care to answer my question about PB turnover of LPEs that you’ve failed to answer a couple of times now ?
LOL, Dom Trolling PIE AgentQ73 Trolling Dom
‘I am available to my business leaders 24/7. I do sometimes work seven days a week’. Big deal, it must be very dark where you have your head Mr Long. The buck stops at the top, you appointed her and stood by while she totally annihilated a very solid business, you should have some humility and leave, go and look after your other appointments, perhaps those other businesses will decide for you that you are over boarded.
WHAT A LOAD OF RUBBISH.
This is the man that was on the board during the time they went ”retail”. This man went along with it and now he turns around and blames others.
Love it!!!!!
Let’s hope all those invested in disruption read that and take note!!!!