Countrywide investors perk up after lenders agree they will still back UK’s largest agent

Shares in Countrywide ticked up after the firm put out a statement saying that its lenders will support the business as it ‘restores’ its sales and lettings activities back to profitable growth.

The statement said: “Countrywide plc, the UK’s largest integrated property services group, announces that on February 2 the Company agreed an amendment letter relating to its term and revolving credit facility with its lender partners which provides the Company with the financial flexibility to invest in the business as it takes action to restore the sales and lettings business back to profitable growth.”

Shares on Friday went up to 93p – still under the 100p milestone where it sank when CEO Alison Platt left the business last month, but an improvement on the sub-90p to which the shares fell before Friday’s statement, which was issued under the headline: “Countrywide plc amends finance facilities.”

Last month, Countrywide issued a profits warning.

x

Email the story to a friend



4 Comments

  1. Hillofwad71

    They have no other choice but to support them The patient  is still sick .They achieved their aim of ousting Platt but still require them to take action They will want to see a heavyweight appointment which will then enable CWD  to go back into the  market with another placing say £50m which will reduce the debt pile take the heat off.

     

    Some posters  here think just because the  debt is manageable its OK its not CWD are being run by their bankers and until they get a clear business plan  of how its going to be reduced this will still be the case

    However this is  unlikely to  benefit the private investor  especially in the short term This will buck back below 90p

     

     

    Report
    1. smile please

      Make your mind up last week you had the banks calling in the debt!

      Report
      1. Hillofwad71

        Smile Please

        You really need to acquaint yourself with the facts here  before making  your  little digs.  Early last year they were under pressure from the banks here to reduce the debt . Read the  Regulatory  News Statements .

        Banks tend to get a little twitchy when they bankroll  a company’s expansion plan when it fails   to increase revenue  or perhaps you know different?

        Perhaps you have never run a business when you have  borrowed a heap of dough to expand and things haven’,t worked out  according to plan to know how banks operate?

        Unfortunately ”  managing the debt” isn’t enough unless accompanied by a definitive strategy  going forward with milestone payments Until they appoint a new CEO with a strategy  they are still in intensive care That’s s how these things work

        Don’t take my word for it .They identified  LSH as a subsidiary which might attract a significant offer.Unfortunately after testing the market this failed to materialise  this died a death so in order to reduce the debt   they   placed shares at 175p with various  institutions  to raise funds which they did and reduced the debt but not significantly

        I guess you would describe that as”calling in the debt”

        Unfortunately  this year revenue has decreased further which has only served to  increase pressure  .Platt of course being a major sacrifice

        CWD   will probably  need to go out again for further equity to satisfy the banks.They have  already hinted  at that IMHO £50m might be enough  to do that plus the appointment of a CEO which meets the bank approval to steady the ship  .In turn this will reduce pressure so they can continue doing what they are meant to be good at without looking over their shoulders

        The problem they have  at what SP will the placing  be at to succeed  ? last year was 175p maybe 80p Depends how the market feels about the new appointment  I really dont know but the likelihood is the small PI  will continue to get shafted

        Report
  2. hodge

    A heavyweight contender?

     

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.