Shares in Countrywide tumbled this morning after the UK’s largest estate agent warned that its operating profit has fallen 11% in the first nine months of 2015.
It says in a trading update for the quarter ended September 30 that its full-year operating profit will fall from 2014, its most profitable year.
Countrywide said that sales volumes will end up this year at around 950,000 in total – or 5% below last year – “as the anticipated post-election recovery in residential transactions failed to materialise in any significant way”.
Countrywide itself exchanged on 48,541 home sales in the first three quarters of this year – 10% below levels for the same period last year.
Last year’s Stamp Duty reforms have also “constrained” moves at the top end of the market, Countrywide said.
CEO Alison Platt said: “While we are undoubtedly experiencing a period of short-term pressure on market volumes, we continue to invest in our underlying business to ensure we have the foundation for future growth.”
She went on: “Against the current backdrop of less than expected residential volumes, Group EBITDA for the nine months to 30 September was 11% below last year.”
At around 10.30am this morning, Countrywide shares were down 12%, standing at 410p from 465p – a two-and-a-half year low.
However, Countrywide is not the only estate agent with losses on shares today: shares in Foxtons, which had already been on the slide, were down 7% at the same time, to 184p, and shares in Savills were down 2%. Shares in Martin & Co and Belvoir were also weak.
Countrywide is due to report full-year results for 2015 in February.
“Countrywide said that sales volumes slid at least 5% to around 950,000 “as the anticipated post-election recovery in residential transactions failed to materialise in any significant way”.
Nothing to do with all the behind the scenes changes and looking to focus in a new direction then?
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News flash 2, Countrywide PR agency issues revised press release:
Countrywide said that sales volumes will end up this year at around 950,000 in total “as the anticipated post-election recovery in residential transactions failed to materialise in any significant way for us. Other agents though continue to do very well”.
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I have to endorse that el burro….our small independent group posted best ever annual figures, with current pipelines significantly up as well.
It is unusual (if it is the same or similar across the board) that independents are posting much better results than online agents and corporate agents………Perhaps this is the future of estate agency?
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Just waiting for the onliners to pipe up proclaiming it’s the start of the end for “traditional” agents
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I blame OnTheMarket 😉
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Perhaps they should cash in their Z shares and join OTM….. 😉
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Tell me Richard Rawlings?….. this’ll be OnTheMarket’s fault as well?! Doh!
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Be nice to him, he wants to be the boss!
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Boss of what?
Naff letters?
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The open letter is a direct challenge to Ian Springett which says what he wants take control of.
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Perhaps Alison Platt can still negotiate some BUPA discount to offer on Instructions?
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The last line of the Guardians on-line report of the above reads…
“Countrywide also hinted it could sell a stake in property search engine Zoopla worth about £40m.”
Wouldn’t that be interesting. Perhaps my comment above wasn’t too far off the mark.
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