Countrywide drops hint that it may sell its shares in Zoopla

| Rosalind Renshaw

Countrywide is to “monitor” its shares in Zoopla.

It says, in relation to shareholder returns, at the end of yesterday’s trading statement: “In the meantime, we will continue to monitor our options with regard to our current holding in the Zoopla Property Group.”

At Zoopla’s float last year, Countrywide offloaded a 2.2% stake in the portal worth £20m, but continued to hold a 4.1% stake.

Today that stake is worth some £40m.

The £20m originally cashed in was paid to Countrywide’s shareholders.

The possibility that Countrywide might sell more – or even all – of its shareholding in Zoopla comes at the end of yesterday’s trading update, which saw Countrywide’s own shares plummet.

Under the heading “Shareholder Returns”, the update says:

“The Group’s five year plan requires an increased level of investment to deliver significant EBITDA growth and enhance shareholder returns.

“The Group’s normal dividends will, however, remain unchanged at 35-45% of underlying profit after tax.

“For the financial year ending 31 December 2015, the Board intends to maintain the total ordinary dividend at the previous year’s level of 15p per share.

“It is envisaged that the payment of special dividends will be reintroduced in 2017 and in the meantime we will continue to monitor our options with regard to our current holding in the Zoopla Property Group.”

It is the second time within weeks that Countrywide has raised the possibility of selling Zoopla shares.

In a presentation to investors, it said that no special dividend is “currently planned in 2015 or 2016 except in the event of further sales of Zoopla shares”.

Zoopla’s share prices fluttered slightly downwards yesterday by 1.38%.

Zoopla has a market capitalisation of just over £1bn.

One City analyst we spoke to yesterday said that if Countrywide were to sell further shares in Zoopla, that could be perceived as bad news for the portal. But the analyst suggested that Countrywide might be wanting to wait and see how OnTheMarket performs before making a decision.

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34 Comments

  1. Robert May
    November 5, 2015 at 07:27

    “Higgerty, Haggerty, Hoggerty Hi” ?

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  2. NewsBoy
    November 5, 2015 at 08:16

    About time. They look too have given up flogging that dead horse. Now is just the right moment for all the corporates to see sense and invest in OTM. Without them Hoopla’s property numbers will shrink and shrink.. This is not the beginning of the end but it may be the end of the beginning.

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    1. danny
      November 5, 2015 at 14:17

      Ill just leave this here….

      http://www.propertyindustryeye.com/countrywide-to-launch-an-online-estate-agency/

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      1. danny
        November 5, 2015 at 14:57

        And ill leave this underneath it ….

        http://www.propertywide.co.uk/countrywide-services/estate-agents/

         

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        1. danny
          November 5, 2015 at 15:06

          Newsboy, I would love take the time out of the day to explain why there is not even the remotest chance of the largest estate in the UK that runs its own property portal, plans to start an online estate agent and has its own new homes developer would invest in a portal that run by its competitors,bans other portals, new homes developers and online agents but i’m very busy currently teaching some cheese how to swim

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  3. jmeapps01
    November 5, 2015 at 08:40

    Shame on you PIE. Becoming a spin storyteller. Fortunately I can’t imagine many market brokers pay a blind bit of notice of some estate agency rag!!!

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    1. Gump
      November 5, 2015 at 08:58

      More notice than they will likely pay you

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      1. jmeapps01
        November 5, 2015 at 09:21

        Run Forrest Run!!!!

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        1. Gump
          November 5, 2015 at 09:25

          20,000,000 s p e r m and you were the quickest?

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          1. jmeapps01
            November 5, 2015 at 11:18

            Oh come on grump is that the best you can do.You are depriving some poor village of its idiot

             

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            1. Gump
              November 5, 2015 at 11:31

              It’s over jm, there is no comeback to that line (especially the village idiot one) you’ve been owned, move on

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              1. jmeapps01
                November 5, 2015 at 12:22

                Yay you win Grump. On your way now

                 

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              2. PeeBee
                November 5, 2015 at 12:27

                SPEAKING OF BEING “OWNED”…

                I am sorry, Ros, Nick and John for breaking posting rules – I know it’s verboten to post links – but anyone wishing to see a certain “Property Expert. Top 50 London Innovator. Financial Times Global Disruptor” being handed his @r$e, sliced, diced and stuffed into a Netto carrier bag should have a deeks here:

                http://bit.ly/1l9aoV1

                Trust me… it would be rude not to!

                Advice – do not view while drinking coffee, tea – or any liquid that could cause catastrophic keyboard damage! ;o)

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                1. Gump
                  November 5, 2015 at 12:35

                  Ha! Yup, def owned 🙂

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                  1. PeeBee
                    November 5, 2015 at 13:34

                    You see, Gump – we DO agree on something at least! ;o)

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                2. smile please
                  November 5, 2015 at 14:34

                  Brilliant. More please!

                   

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    2. Robert May
      November 5, 2015 at 09:31

      With respect EYE reaches the customer audience of Zoopla, that is far more important than the city or market brokers.

      This is another wheel coming off the disruptor project started in  January 2008.

      It is unlikely that the retail  focused executive board will not understand the negative, competitive affects of  Zoopla on their business but they will understand the trend line graphs that  indicate now is a very good time to take a profit on the shares.

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      1. the message
        November 5, 2015 at 10:16

        robert you are hilarious – the thought you have a clue about trend line graphs!!

        Countrywide should definitely sell the shares, though really they should have sold them months ago – nowt to do with OTM, but they are a plc, give the money to shareholders, who can then decide if they want Z shares or not.

        Z shares have been all over the place in the last year, and loads of ways of reading the impact of OTM on perception of them. You could say they are up 30% since OTM launch, but I am sure other people can find equally compelling stats the other way.

        what is true is that “the city” do not buy into the success of OTM -hence why R are worth double than what they were at OTM launch. But again none of that matters – what does matter is getting consumers to visit.

        And even inventory doesnt really matter – as I have said before there are portals that have had whole of market but have failed – and look at the nestoria site now – they have loads of properties advertised, but NOONE GOES THERE!!! this consumers follow the properties is absolute tosh, peddled by springers. Consumers go to sites they know and trust, and which give them what they want.

        I still get so frustrated that no OTM person realises that the consumers loves a load of R and Z’s features, and OTM not giving them is a huge step backwards, and the consumer just wont stand for it, they might go once or twice, but wont accept not having historic prices to hand for instance. It is total lunacy to just think its about the property – but thats estate agents for you – great at selling properties but lousy at understsanding digital marketing!

        ok, off topic rant over, just so frustrating we wont make AM work because of lazt thinking

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        1. Robert May
          November 5, 2015 at 10:59

          I might be hilarious but without my post  to influence your comment what would you have typed?

          You have assumed which trend line graphs I am talking about and made yourself look a bit daft. I am not referring to share prices.

          Let me reiterate a point I have already made several times. I am stupid, the most stupid person on here.  I spend all day typing my opinions and thoughts, absorbing insults for doing so and receiving not a penny in salary or income. Well done you for being superior to and attempting to mock an idiot who cares very little  for what you think or say.

           

           

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  4. Paul House
    November 5, 2015 at 09:06

    You can picture the Countrywide touting letter now…

     

    WHY DOES YOUR AGENT NOT USE THE 2 LEADING PROPERTY PORTALS RIGHTMOVE & ONTHEMARKET!

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  5. the message
    November 5, 2015 at 09:25

    poor set of results indeed – tough time to have joined for the new CEO, and the fact that she isnt “industry” is going to make it hard for her, especially in tough times. You cant make an omelette without breaking eggs, but results definitely impacted by her.

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  6. wilko
    November 5, 2015 at 10:09

    It would make sense for Countrywide to consider selling their remaining stake in Zoopla.

    Both Zoopla and Countrywide are in the process of changing their business models and I can’t see why Countrywide would consider continuing with Zoopla as a long term partner.

    Besides, Countrywide (after their last set of results) could probably do with the money to invest in their re-structuring.

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  7. the message
    November 5, 2015 at 10:45

    owning shares in a plc doesnt make you a long term partner, you can buy or sell anything you want and dont have an influence. They could drop Z, go to OTM and still own shares if they wanted. This is a total red herrring, shows how little most agents know about how the stock market works, and how much PIE try to spin pro OTM stories.

     

    Its funny to watch and read, and make me realise even more how I manage to do so well in this industry!! 🙂

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    1. BrandNew
      November 5, 2015 at 10:58

      I take it you are privy to the contractual arrangements between them and Z then…. ?

      Why not enlighten us.

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      1. wilko
        November 5, 2015 at 11:05

        Message I didn’t mean “partner” as in “business partner”. I meant it in the sense of “marketing partner”…….similar to many agencies who boast they work with their chosen partners RM/Z/OTM/BYM etc. I would be interested in your views now you know my comment was not about “how little I know about the stock market”

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        1. wilko
          November 5, 2015 at 13:55

          Message…”but as a data led business they wont turn off one of their major sources of lead gen “….

          As a data led business maybe they are considering changing their portal options so they can cross sell to their data rather than allow another company to benefit from their own generated data?

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  8. the message
    November 5, 2015 at 11:12

    I would imagine they will make the call on OTM or Z based on cold hard facts and logic and not emotion. Goes back to the points I laid out in the arena. I am sure if OTM charged £50-£100 a month and dropped the exclusivity clause they would be on like a shot, but as a data led business they wont turn off one of their major sources of lead gen and brand building on a whim. Just a guess, but would imagine thats the case.

    There is no “hold” on their owning the shares brandnew – if there was that would have had to be disclosed by Z as a plc, so CW are free to sell at anytime. Its not me having inside knowledge, its just knowing how things work. You would as well if you read around subjects a bit more and didn’t just treat something as gospel because springers or savills or PIE told you so

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    1. BrandNew
      November 5, 2015 at 11:26

      I’m sure formally there is no current ‘hold’, however I would be surprised if the price they pay Z for their listings is not somehow informally linked to their shareholding. If I remember correctly there was actually a ‘hold’ originally which ran out some months ago?

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    2. wilko
      November 5, 2015 at 13:55

      Message…”but as a data led business they wont turn off one of their major sources of lead gen “….

      As a data led business maybe they are considering changing their portal options so they can cross sell to their data rather than allow another company to benefit from their own generated data?

      Report
  9. the message
    November 5, 2015 at 11:49

    6 month hold at time of IPO, same for all holders at the time of IPO. Thats standard for all companies that float. There can be no informal link, do you not get it, if there is it has to be disclosed. PLC’s have to do things by the book. You might want to read into it what you want, but it doesnt exist. To me they should be selling totally, they are not a company that should be speculating on the stock market, should use the cash for something else.

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    1. BrandNew
      November 5, 2015 at 12:01

      I love the idea that “PLC’s have to do things by the book”…. try telling VW that.

      Call me an old cynic…..

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  10. GPL
    November 5, 2015 at 12:04

    From where I’m sitting I take the view that whatever portal turmoil develops with The Duopoly it emphasises to me that the Estate Agency Industry is, on this occasion, actually ahead of the game by having OnTheMarket.com, its own portal that is focused only on the property industry and not subject to the demands or unrelated strategies of partners/shareholders.

    There almost a sense of passion in the_message comments…. however I’ve yet to figure out where that passion is really directed?

    Sure OTM as a portal is NOT perfect at present however why would it be?…. it’s growing and change will come no doubt, from its members who will have to see their views being listened to and acted upon….. and some of those helpful portal features will no doubt appear.

    Zoopla hoisted its portal flag when it acquired uswitch…. it’s going in a different direction, trying to harness all that data that agent have provided with the visitors browsing stock.

    Rightmove still positions itself as the friend of agent and public alike…… however, for me, it remains the maggot of our industry….. quietly chomping away from the inside doing immense damage that we real estate agents cannot simply ignore because we cannot see it happening!

    If any real estate agent continues to have a gut instinct for our industry then it must be saying…. back OnTheMarket.com …..for the future of our industry.

     

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  11. the message
    November 5, 2015 at 12:41

    GPL, I have laid out what needs to happen quite clearly in the arena, I think it was passionate and open and honest. Unfortunately you have decided that anyone outside the tent can have no view, yet you want to entice me in. I salute your bravery/naivety but unless there are others more prepared to listen this thing will slowly die, ruined because good men do nothing apart from follow the “leaders” who all have a totally different agenda from the common man

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  12. GPL
    November 5, 2015 at 13:17

    At the risk of boring myself the_message….. I have no doubt that myself and many other OTM Members have left OTM to develop over Year 1 with the intention of reviewing that development at the end of Year 1.

    Members tinkering along the way in Year 1 would be a distraction however just like any employee The OTM Board will face their review on 26/01/2016. Ric & others have fairly stated about change now or along the way however, personally, I felt/have been happy’ish to leave The Board to it because it is Year 1.

    There have to be explanations/changes/new strategy etc for Year 2…. however I don’t think a member revolt is required as there are many, many talented individuals/businesses amongst the OTM Membership. I would personally like to see Board related groups from across the UK Feeding back into the Main Board to provide a widespread/yet targeted vein of feedback/ideas…. however not just for political correctness or as a pat on the head to the OTM Membership!…… nor to have folk sitting in a hotel meeting room congratulating themselves that they are in some sort of privileged position. The OTM Board must take the Final Decisions however they clearly must listen to their Membership….. or face the consequences of isolated decision making.

    I more than most have an enormous gripe with OTM related to its launch and our business….. I lambasted them, their management, Ian Springett, my Rep because of a farce that unfolded, however I NEVER lost faith in the BIGGER GOAL….. delivering a Portal which focused on the future of the real estate agency industry!

    So, Year 1……. still here!…… problems to solve…… membership to grow…… change required…… solid explanations required….. and a membership to listen to and act from…… if that happens then Year 2 offers real potential. If not…… The Board will have failed their Membership!

    Report
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