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Countrywide profits slump as house sales stall

The group needed an emergency £140mln cash injection in August
estate agent boards
The number of properties on the market has risen

Embattled estate agent Countrywide PLC’s (LON:CWD) profits halved in 2018 as sales through its network tumbled.

The group needed an emergency £140mln cash injection in August to help keep it going but having started on a turnaround plan the tone was a little more optimistic.

READ: Countrywide shareholders approve £140mln emergency fundraising

Properties available and the number of transactions where contracts are waiting to be exchanged had both risen, the estate agent said.

A lack of deals meant revenues dropped 7% to £627mln in 2018 while underlying profits (adjusted EBITDA) halved to £33mln.

Sales commissions fell by 16%, lettings were flat and there were small drops in the contributions from B2B and financial services.

A more detailed update on how the turnaround is progressing will be released with the full numbers in March, Countrywide said.

Year-end net debt was £70mln.

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