Proactive Investors - Run By Investors For Investors

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.

View full CWD profile View Profile

Countrywide Timeline

Related Articles

Belvoir
February 08 2019
Belvoir has expanded its operations in mortgages to provide an alternative source of income
Doctors
March 18 2019
Analysts at Peel Hunt said: “The enlarged vehicle now delivers a very durable income proposition underpinned by a Government covenant and sector-leading income efficiency”
care
March 29 2019
Chief executive Joe McTaggart said the company has a strong pipeline of projects for 2019 that are expected to deliver “good results”.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use