Countrywide shares took another dive yesterday, falling to around 5p.
A fall of around 10% came in early trading, and was not prompted by any special announcement.
Last August the UK’s largest estate agency raised £140m in an emergency cash call from investors to pay off debts. It made a pre-tax loss of £251m for the year to the end of last December, on revenues of £619m.
The firm, which is currently closing more branches in line with what it has said about its turnaround plan, has been upbeat about its recovery prospects.
The shares yesterday afternoon recovered from a low of 5.04p to 5.3p, but just before trading ended for the day, they fell again.
The share price starts today at 5.1p.
Comments (20)
The tenant fee act may be the nail in the coffin.
Personally I think the whole business is outdated, but especially in my town. They were an easy target to pick off and local residents “hate” their approach. They should and could save thousands and stop sending ridiculous wind up letters to other agents customers, sometimes 4-5 a month when the house is sold……oh, open your office on a Saturday, clean your window, dress smartly and get rid of the desks that look like they came from a car boot sale…..Image is key, honesty it essential and a strong local brand is priceless…..good luck!!!
Smile please your analogy is 100%accurate. An ex employee of many years at branch manager level you have hit the nail on the head! Senior management are just ‘yes’ boys to the M.D’s. In the position they find themselves in they are still adopting the no appointments on a Thursday as it’s all about ‘business generation’ come 5.30 those doors are locked and they’re off. In my day if there was a deal to be had you worked every hour you could! Get out guys while you can!
Remember Cornerstone? CW went along the same route and up an alley.
I was talking just yesterday to somebody about CW woes.
I had a stellar career at CW did very well both financially and careerwise.
The issue always has been (and always will be) the roll out of ideas, new concepts, company ethos etc.
They have some great ideas and its (eventually) rolled out at branch level with great fanfare, And then Tuesday evening comes round and you need to report figures. Then it does not matter what the ‘focus’ is its about the figures. Come Wednesday morning the new idea is forgotten about or is a distant memory.
Given the amount of conference calls, meetings, ridiculous branch targets that have been set this year (no chance these will be hit) Things like service go out the window. In this market more than ever service counts.
You have branches that a few years ago had 7/8 staf now operating on 3. The silly tablets they have to take on valuations and restrict the marketing you can do, do not help matters.
The Harry Hill model is now outdated, corporates are just not fit for purpose.
Retail and online is not the answer either.
You need to be able to adapt to your buyer, sellers in this market on a bespoke basis.
CW can turn it round, but they wont. Its far too big a job, They are in a catch 22 – to make it work they need to focus on figures, the reason they are not performing is the focus on figures.
Ideal world, they have a sharp correction, Head office sit down with office level / regional level staff. Work out what they need. identify systems, recruit staff, when the bones are in place don not worry about figures for a month. Then implement plan focusing on service, advice and good will within teams.
Issue is CW probably do not have enough £ in the bank to cover this and also arrogant enough to feel they can roll it out along side their normal working day like they always have.
Oh and a plea please, on Linkedin if you work for CW stop saying how well you are doing or how you all love each other, fools nobody!
Absolutely spot on
I worked for countrywide for 13 years until January this year, it’s a shell of its former glory. The disconnect between the branch workers and anyone above area manager level is huge. No one at branch level gets listened too or assistance, the area managers have their hands tied and get no help from above. With the correct people in charge i honestly believe it could be turned around, i just don’t believe the right people are in charge or that the have the right plan to turn it around.
To do so, they are going to have to learn to trust their frontline staff and stop trying to micro manage every day’s activity on an hour by hour basis and accept that one size does not fit all, ie, smaller, rural branches are never going to be able to produce similar levels of FS and conveyancing business (even on a pro rata basis) as a big city centre branch. Allow Regionals and Branch Managers the flexibility to get creative and (hopefully) entreprenurial.
Sadly, I think it is mnore likley that the worse things get, the closer the scrutiny that will be applied to individual’s activity on an increasingly minute by minute basis. Classic “the beatings will continue until morale improves” stuff.
It may also be that in the time that was occupied by Platt’s absurd retai stragey, agency changed and evolved to the point that Countrywide’s direction of travel is too different from agency’s direction to allow C’Wide to catch up and become relevant again. I fear that it will take a major upheaval, such as a takeover, break up and/or going into administration before C’Wide can turn themselves around.
I couldn’t agree more. I know of local branches where head office ar calling vendors to make sure Conveyancing has been “punted” to vendors and the manager has to go to training if its less than 50% conversion. Beat up rather than upskill.
I feel a breakdwon and sell off of brands may not be far away.
Hmmm maybe they need to add into this call and make buyers and sellers aware of the £300-£400 per solicitor case thats put into each branches P/L as part of the solicitor referral fee….. just to make sure disclosure is all AOK
In the words of our tireless leader Stuart Lobb Managing Director ‘ selling sky to our customers’ will be a ‘game changer’ . At the very least it paid for Countywide Awards Evening where they were banking on a financial contribution from Sky to fund the champagne they were giving away .
Shame that. In my day with Millers/Fulfords/Stratton Creber/Palmer Snell (The old South West Division), Stuart was one of the good guys. I guess that once you get to MD you need to toe the company line.
Simba as the catchprases roll out for Sky.. Believe in better you obviously did after sipping a few glasses of Le Moët at an Awards do and escaping to some clear blue water in the EA World.
The big question is would you swap a Cadbury’s Fredo for a CW 5p share… they are gonna go up honest
Having worked for this company for over 15 years back in the day we had some good times and some bad times and I looked up to the likes of Harry Hill, Anthony Ekins et al and yes even Bob Scarff ( on occasions) it was both a career and a vocation in those days but to see this once great company subsequently trashed by appalling decisions, weak management and a recruitment policy seemingly focused on the little you knew about Estate Agency the better was too much to take which is why I got out ( along with too many good people to mention ) who just refused to take the ‘ we are retail ‘ cr*p on board and I left behind more good people who either financially could not afford to leave or who genuinely thought things would get better. Now some of those loyal people find their Branch being closed for little or no reason being given other than ‘ for business reasons’ and shown the door. A share price at 5p!! what an appalling reflection on what was once a business I was so proud to work for. Just so sad.
You have to feel for the staff who are being told “it’ll be ok”
And behind closed doors, the staff who are being made redundant after years of being lied too.
“Back to basics” – isn’t showing any force.
Budget cuts, expenses cut, yet everywhere awards nights costing hundreds of thousands of pounds for the yes men who think they wont go down with the sinking ship all because the big boss treats them to a day out every now and then whilst planning their own escape.
I sold 75% of my shares a while ago and left 25% in for fun, with perhaps the thought that they may rise like a Phoenix?
I suspect however that this Phoenix has lost all ability to fly. In for a £, out with a Penny it seems.
Watching this decline, is more painful than the £000’s i’ve lost in my shares. I believe the BoD’s must all come from the land of Theresa May and why, oh why does nobody have the backbone to do anything about it?
RIP miller countrywide Callington in Cornwall who close this coming Friday.
From the dizzy heights of £5.85 a share to 5p the writing is on the wall.
I can’t see how they can turn this mess around. I feel sorry for the staff. Looks like a Reeds Rain situation could be repeated.
Think they are shutting branches all over the place, just not making an announcement like LSL did.