Countrywide shares slipped after this morning’s meeting of shareholders overwhelmingly approved Countrywide’s rescue plan.
Around 98% approved the subscription by Oaktree Capital Management of up to 397,733,081 new ordinary shares.
There was almost 99% approval of the subscription by Brandes Investment Partners of up to 310,462,824 new ordinary shares.
Coumtrywide share prices had been slipping in this morning’s trading ahead of the meeting and its results.
After the announcement, shares fell more heavily and at around 2pm were down 9.4%, to stand at 13.5p
Comments (16)
Good news for Countrywide, hopefully they will sort things out. Interesting to see that YOPA have secured another £20m. There must be something that investors know about the market that agents are missing as they are piling in on both traditional and online models.
They might know about the market, they know nothing about agency.
Shares only down 10% after the news ….
I think the offices in or close to profit can sigh relief as 140 million shows they are here to stay (for the time being).
However, if my branch was down on target this year and less than 50% towards covering costs in 2018 i would be bricking it.
i have heard a number of offices that have historically done 200k year in year out (circa 60k profit) are only on 30k YTD banked business.
I think you will see an overwhelming closures of offices over the next 12 – 18 months. Remember most of the offices are on rolling 12 month leases now. No need to worry about mothballing them.
Look out for ‘Regional Hubs’ which will take the place of 3 or 4 offices ……
How can anybody run an office on £140k?
For a start the total portal costs are just £125 per month.
And in regards to CRM systems they are heavily discounted.
3 staff at less than 70k combined costs as well.
Other than that it’s peanuts for them.
IMHO this seems a little bit like the grandchildren’s’ partners’ getting together and agreeing to put a terminally-ill grandparent on an ‘exciting’ new medical trial in a last ditch attempt to stave-off the inevitable decline toward his/hers own demise…knowing full well that the probability of success is less than 10-1. Hoping that the drugs last just long enough for them to visit the hospital and persuade the already tired/ailing ol’ timer to change his Will… going so far as to hold the pen for him/her whilst sloppily trying to generate a signature that’ll be reasonably accepted as binding…At the other end of the bed, the ”doctor” discreetly places a clip board with a top-sheet stating ”DNR…(AGAIN)” and removes a small envelope containing an ”I OWE YOU” payable upon death.
All the while the grandchildren who have stayed by his/her side sob, as those who conceived the plan celebrate in the hospital café, waiting for the inevitable pay-out when grandpa ”pops his clogs” and they can divvy up his Estate, using his organs and limbs to create ”Robo-Prop 2.0”.
the turkeys have voted for christmas
I expect a few directors get a nice pay check for doing nothing and main shareholders get 1/2 price options.
Someone pays for these mistakes…probably pensioners. It wont be the fund managers.
Unfortunately the poor private investor has already paid heavily for the mistakes in just over 3 years the SP has plummeted from 600p to 14p Anyone with 83, 300 shares worth £500k just over 3 years ago a handy nest egg held with the prospect of some decent dividends set fair for the future.
That is now reduced to just £11,500 today and no prospect of a dividend for the forseeable future either A life changing amount for many fast tracking them from comfort to penury,Beyond disgrace
Regardless of the Countrywide Clowns let’s be crystal clear that Shares are a risk, you Gamble, you Win, you Gamble, you LOSE!
In my view Shares are a form of Gambling, in this case it was certainly Gambling looking at those in charge.
Not sure many private investors would be holding £500k in any single holding.
If so and it’s you then sorry – you’re an idiot. Are you not familiar with diversification?
Simple? ?.GPL
You wrongly jump to some assumptions probably not the the best temperament for a valuer . Just using an example of how the value of the company has been decimated by a whole series of bad decisions Buying disappearing turnover with borrowed cash was always going to end in tears and for that reason alone I steered well clear
Sympathetic pair to other’s plight aren’t we! Clearly fully paid members of the RICS Lionheart scheme
Don’t forget many staff facing retirement were rewarded with shares and shares options It’s just a form of ownership They weren’t betting slips! and have arrived through no fault of their own facing retirement impoverished.In addition there would be windows on and around results where some of the staff would be prevented from trading to ease their plight .
Trust me Wad, you don’t need to worry about my temperament, it’s served me very well for decades.
As I say Wad….. Shares are akin to gambling, whether you buy them or are rewarded/awarded them. That is simple to understand? However, I’ll explain….. £1000 Cash in your hand remains £1000 (ignore inflation, nuclear obliteration etc)…. £1000 worth of Shares takes you on a risk of reward or loss journey. An extreme example is bitcoin…. settle down in a well damped chair and watch that rolling graph spike up n’ down….
In the meantime, I’ll take out my temperament and pop it back in its lead lined case.
Have a nice day Wad.
Shares are fractional ownership of a business akin to having an equity share in a partnership . If your partners embark on a run of business decisions which unfortunately you are outvoted on which ends up disastrously for the practice making your equity worthless that I would call unfortunate and a victim of circumstances Youronly choice is to leave which those at the end of their career have limited choices or opportunity to make up lost ground
A gamble yes in that every business forms some sort of a gamble but not made of your own volition I would go and look in that leadlined case for a little empathy!
Last word Wad….. for you…..Zzzzzzzzzzzz
Last words from me Wad…..
Every day you wake up life is a gamble of sorts, you have some control however you don’t control everything around you.
When I ever get spare time (rare!), I disappear into the remote North of Scotland, reminding myself that riding a motorcycle is also a gamble, I control elements and others I have no control over.
So, I told my loved ones (& my Mother who worries when I am away) that if they ever get a knock at the door and “I’m gone” know that seconds before I was enjoying life….. and that is a blessing.
So, forgive me when you referred earlier to your “private investor” example? ……however that “private investor” chose in some way to invest so they need to consider their choice/risk and think about the consequences. If they didn’t, and they expected life to turn out just the way they hoped? ……that seems pretty naive to me.
No axe to grind Wad…. you have your opinion, I have mine…. we are entitled to express them however we need not insist that the other should agree.
Buy a Motorbike if you have any spare share money, ride it and enjoy life, preferably not to a Cafe for a Latte or to pose or to polish …..however if that floats your boat that’s okay, because it’s your choice.
Now, before I turn into some sort of Life Bhudda…. I’ll retire to bed with the knowledge that tomorrow is another day and if it comes we should all crack on and enjoy our “another day”.