Countrywide shares yesterday tumbled to a new record low of just 6.4p after announcing a drop in revenues in the first quarter of this year.
The fall was almost 8%, from a high of 7p, taking the UK’s largest estate agency to a market capitalisation of around £115m.
Countrywide had also warned that first-half profits in the form of “adjusted EBITDA” – essentially theoretical profits that would be made if costs could be stripped out – would drop £5m compared with the same period last year.
However Countrywide sounded an upbeat note about the second half of this year and its ‘self help’ measures.
The LSL share price also dropped yesterday by around 2% in early trading after announcing improved group revenues driven by a 40% rise in surveying income and a 21% rise in revenue from financial services – but an 8.5% fall in estate agency income.
LSL’s cull of Your Move and Reeds Rains branches drove down revenue at the two brands by over 9%, while there was a 10% drop in revenue at Marsh & Parsons.
LSL’s total income from residential sales was down 13.7% year on year. Total lettings income was also down, by 4.4%.
Earlier this year, LSL cut the number of directly owned branches from 308 to 144. Some 81 branches were merged, 39 were franchised and 44 closed.
The LSL share price ended the day unchanged at 266p after drifting back upwards from 260p.
Countrywide’s share price struggled up only very slightly to finish at 6.5p – still a new low.
Comments (12)
I would be glad to see Countrywide disappear. I paid £3000 for the agent I used to tell my buyer what my bottom line price was. It was valued and marketed by them 15k more than what I could accept to get moving. They don’t care about what they sell for as long as they get their commission, they certainly didn’t fight for me to get the best price. They told me that was the best I could get and to cancel the 6 viewings booked in to seal the deal.
High street robbers. I am glad to see the online agents make an effort despite some back peddling, one day they will get it right and finally people won’t keep getting ripped off for a shocking service.
Platt’s got a lot to answer for.
Not just Platt, been almost a year since she departed. BOD’s should have stood up to her instead of agreeing and now they should be looking to make meaningful changes. Still no CEO – A chap running the business who has been accused of overboarding no wonder investor have little or no confidence in the business.
They need to merge or appoint a CEO and CFO with clout and experience in the sector.
Drastic action has to come.
Letting fee ban impact, will be the nail in the coffin.
They will have to announce a mass closure at some point this year. As at least taking some action to try and save it.
Think they are already on with that, just not in one fell swoop like LSL
The closures are happening ssshhh Nothing to see here folks. Miller Countrywide in Liskeard is one such branch and no doubt more to follow.
Very sad for the loyal staff who are being driven into the ground with the Back to Basics waffle and were enticed and encouraged to reinvest in shares with a guaranteed min share value of 80p + …. who’s going to fill in the short fall on this or will sub clause 6.1 state that they won’t need to pay the difference or have staff been Miss Sold by The Hierarchy??
i think I’ll buy a Fredo with my 10p
Six one penny chews….. not sure I would swap
Let’s all look for loose change down the back of the sofa to put a bid in.
6p if I did not own shares it would be hilarious seeing how far this company has fallen.
Why hilarious?
It’s going to be Survival of the fittest and Countrywide will keep struggling along unless drastic measures are taken at board level.
Sadly, all the clever folk with spines have already left, there’s no one left to challenge the board!
The current employees, as lovely as they all are, will just follow blindly whilst being sold the ‘Back to Basics’ idea is still working. The top end of the group, eg Hamptons etc, can’t wait to be sold off as they didn’t want to be part of the group in the first place. Hamptons managed to keep some independence by not being sucked into using the prehistoric IT system that Countrywide use as a whole, well done them.
It is the innocent, loyal and trusting employee who will feel the fallout the hardest, as usual and it is these people only, I wish the best of luck too!
Win saleable instructions, do your best for the clients, think like an independent. That’s back to basics.
It might not work for those who are at work so should be paid but back to basics is; if we don’t sell we don’t eat.