Countrywide shares endured a bruising day on the stock market yesterday, on what should have been the beginning of a bright new future.
Instead, the share price fell around 3,7% to finish the day at another new low of 12.52p. The market capitalisation, according to the London Stock Exchange, descended to £68m. The market caps quoted by EYE are always taken from the LSE.
Yesterday, new shares were admitted for trading at 8am, following the company’s emergency £140m cash call. The new total voting rights are 1,637,983,693.
The new money is designed to reduce Countrywide’s debt, but critics have said that the firm will remain too highly leveraged with around £65m still owed to lenders. Of the £140m raised, some £11m will go in fees to advisers.
Countrywide also yesterday announced to the stock exchange that certain of its managers have been allotted new shares at the price of 10p each.
These include executive chairman Peter Long, new managing director Paul Creffield, and finance chief Himanshu Raja.
Comments (9)
The writing on the wall was over a year ago. The company will eventually be broken up and sold, similar to the Prudential back in the day…
Please get these market capitalisations right or don’t mention them at all, otherwise it could mislead potential investors.
1,637,983,693 shares in issue at 12.52p per share means a market cap of about £205m, not £68m.
Typo, you’ve put the decimal point in the wrong place in your calculation. The market cap today is now a heady £29m with net assets/goodwill of around £84m!
Debt is going to kill the parent (Countrywide) on this one and next year accounting rules will have to include premises liabilities which is in excess of £100m. They have only reduced the debt by 60% and yes those set up fees are staggering at £11m! We are in the wrong game. The billing cycle of estate agents will be a killer, the jewels in the crown are LSH, mortgage broking, surveying and a few really strong agency brands. The buying spree of letting businesses was clever but also the route to their ills at the same time; they bought income at too high a price. Add to this a hardening market everywhere and the end of Help to Buy in 2021 which will impact new homes….the meter is ticking.
With 1,638m shares in issue at a price of 12.52p, how can the market cap be a ‘heady’ £29m? More like a ‘very heady’ £205m.
Perhaps it’s escaped your notice that there were placings and an open offer which added 1,400m shares!
The end of the beginning or the beginning of the end ?
The share price movement is now a sideshow, it’s what actually happens at the coal face that will determine its future
The Clowns remain in charge however I hope for the sake of all the good employees that miracle of miracle there is a strategy, it’s properly implemented, and it works
It’s time for The Clowns to actually earn their money. Start by listening to your employees who are actually at the coal face. They most likely know more about the actual business of estate agency etc than you, and how it works/or isn’t within their area
The Clowns have a lifeline, lets see what they actually do with it
I can’t see any hope for this company. I hope they can turn it around somehow.
When £11m is going in fees to advisers you know this brand won’t last long.
£11m to advisors?
is this company seriously looking after its future – or are those in control, together with their mates, milking it for all its worth – as the company collapses, with its shareholders investments ?
It would be worth knowing if one of the advisers with their nose in “the money trough” is Jefferies.
If so, would share holders think they received value for money for their advice in the past.