Countrywide looking at disposal of commercial subsidiary but emphasises no certainty of sale

Reports that Countrywide is selling its commercial property subsidiary, Lambert Smith Hampton, have not been ruled out but have been described as speculation.

Countrywide said in a statement to the stock market yesterday that there is “no certainty” that there will be a sale.

It emphasised that it is only considering a potential disposal.

Claims that Countrywide was definitely looking for a quick sale emerged via commercial property trade publication Estates Gazette, and carried elsewhere.

However, such a sale would have to be notified to shareholders first by the London Stock Exchange’s regulated news service, and as this had plainly not happened, EYE sought clarification.

Yesterday evening, a spokesperson confirmed to EYE: “Countrywide plc notes today’s press speculation and confirms that it is undergoing a strategic review in relation to its Lambert Smith Hampton business (LSH).  As part of that review, Countrywide is considering a potential disposal of LSH.

“The process is ongoing and there can be no certainty that any transaction will proceed. Further announcements will be made as appropriate.”

The firm has made the same statement to the stock exchange.

Countrywide acquired Lambert Smith Hampton just over three years ago, in September 2013, for a total cash consideration of £34.1m.

Lambert was then described as one of the largest commercial property consultancies in the UK and Ireland, with 26 offices and 861 employees.

Any new deal would be the third the firm undergoes in nine years: Lambert was first acquired in a management buyout in 2007 from WS Atkins.

However, while generating strong revenues – £64.1m in 2012 – Lambert was said by Countrywide at the time of the second deal in 2013 to be “struggling to meet its debt service obligation”.

That 2013 purchase by Countrywide means that the firm was discharged from its debt, “and placed on a firm financial footing as part of the Countrywide group”.

 

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20 Comments

  1. smile please

    *dum dum, Another one bites the dust*

    If you are a CW employee at the moment you must be worried that any email coming through is notifying you of your branch closing.

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  2. Hillofwad71

    What a complete farce.Share price freefall This behemoth is unravelling sooner than expected This is  even worse than the reisdential side Just think DTZ but worse .Tens of millions shelled out gobbling up other commercial practices  oly very recently to build some fairy tale mythical synergy This will only sell in its entirety for a fraction of book value You cant sell people    The banks must be very concerned about their  debt.  The star players at LSH will just up sticks clients on tow

     

    This will end up with fragmenation with the various  regionals  buying out or leaving for SFA.  Its third time lucky for the boys at BTW Shiells  in N Ireland They have been  bought out not once but twice before by LSH  .Received  a fancy sum each time and  bought themselves back for  a pittance Now all over again

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    1. mrharvey

      15 sentences.

      5 full stops.

      Baffled.

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      1. Hillofwad71

        You shouldnt be baffled  its a simple case of arithmetic .10 full stops short! Listen its enough trouble tapping keys at 7am in the morning without worrying about a few full stops .

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  3. Robert May

    A corporate agency which effectively owns its own mega media channel.  For anyone thinking of trying the same thing but with unqualified listing reps powered by some dodgy random number generator and a few tacky tech toys, study Countrywide closely, look at its history and understand the future they are showing you.

    The selling public don’t want 2nd hand house sellers, they don’t want cheap, the selling public need the very best levels of service, trust, knowledge and experience. While  Countrywide was a  collection of trusted local firms cemented together as one firm enjoying the benefits of economies of scale it worked. Fiddle with it in any way and it doesn’t

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  4. Philosopher2467

    This is the ‘smoke’. Fire to follow shortly I suspect.

    Someone senior at CHO is leaking stuff to the media. It would suggest that all is not well and so,emnot in accord with Mrs Platt. I wonder hoe secure the management feel at this point? The non execs who appointed Mrs Platt; how do you think you’re little experiment is going?

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  5. yawn

    You boys need a napkin for all that dribble?!

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    1. princealbert83

      Come on Alison; don’t be like that!

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  6. Disappointing90

    Oh dear, another brand tarnished, another few hundred hard working and talented people exposed by the incompetencies of Northern lass’s senior management team.  When will this team understand they don’t own the intellectual wealth of the business, that is what makes agency unique.

    How to grab market share sits with the fee earners and quickly dissipates when you get rid of the experienced people who hold the knowledge.  Strip out all the data from recent acquisitions in agency, lettings, and financial services and inspect those numbers and you will see the real impact made by this current exec. A shocking waning of market share in their traditional strong holds.  Buy a business and let their key people leave, not a business model for success.  Give agency to people who can only use a calculator is proving to be a disaster.  Next plans are to bring Hamptons back to the north, where it failed spectacularly previously even though it was staffed by great people and run by agency professionals in Robin Paterson and co.

    Good luck to Alison and Jim on their next jaunt across to the US to find some more half-wits who think they know what they are talking about.  Start at the Whitehouse, tell the tenant you’re scottish and like golf and maybe you might get some more dirty dollars to poor down the drain.

    Really sad for the great people at Countrywide who remain, have a Merry Christmas, think about a happy new year when you have found a new employer who appreciates, values and understands their business

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  7. Property Peep

    In our area the Countrywide agents have a bad reputation with the general public, they are known as the agent who over charges tenants, who refuses to book you for viewings unless you have seen their ‘independent’ mortgage advisor, and who hound you like a call centre claims agent.

    Unfortunately they are no longer a ‘local friendly’ agency, other independents have crept up and done this better. They have made their bed (and in some ways made everyone else’s with the fee’s ban) and it seems now they may be on their way down to lie in it.

    Countrywide employees, should start getting their CV’s out, and looking elsewhere.

     

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  8. vype200871

    No support, no advertising, no money to produce marketing material, no funds to be able to send the basics like sold in your road flyers once a property is sold, no real regional support in the form of the old area managers, just regional performance directors  now.  Job title says it all.  they are only there to performance manage now and report figures up to the next person, the retails director who also has no say in spend for branches that need it.   They are now being run by HR. The one size fits all across the country with regards to the blanket band on advertising and spending will not work.  Some branches need to advertise in the local papers where they are in small tight nit villages where brand awareness in the local publications are still key and the higher priced areas where the vendor wants to see their lovely expensive house in the local paper, if only to show off to friends is one of the decision making factors when choosing an agent.  Brands have been weakended and network coverage battered and are disapearing from the towns they were once a strong competitor in so market share is reducing and conversion rates for valuation to instruction is down this year in almost all branches but are being told that the conversion must be at 50% in 2017 or else……. and this is not up for discussion.  It is easy to fiddle with conversion rates for reporting purposes so all you will now see in branches is conversion rates at the magical 50% min but no growth on sales or income, so they can report to the shareholders that Countrywide offices convert at 50% of what they go out to see.  Complete madness and i know some already do this but there is a lot of genuine managers that report true figures that will now be fearing for their jobs so will just follow the crowd and fudge figures so their line manager keeps his job and so does the next person up the retail chain of command.    Loaded gun to all managers is the way they will be managed from now on.    recreating a culture in the wrong way.

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  9. princealbert83

    I’d like to see Alison, Sam and the sycophants that are clinging for dear life to their jobs in the management show us how to get that level of conversion when it is only just manageable to raise spirits enough to go in. If it wasn’t for letting your work mates down I doubt many would bother. It’s hopeless.

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  10. hodge

    Interesting to hear the comments and views.  Looking at the facts of profit and in 2008 loss of 30mill

    2009  +16

    10   18mill

    11  12.8

    13   31

    14  35

    15  32

    So despite the acquisitions and turmoils it is still fairly healthy albeit very inefficient for it,s size

    With a healthy war chest and size it has the ability to out Purple Purplebricks and that could mean a dent in the independent sector

    I suspect the inefficiency is caused by past and present management and the uncertainty of the future….Time is going to tell

     

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    1. Philosopher2467

      Interesting numbers! What is unknown is the amount spent on acquisitions in the period illustrated. What is alarming is that the profit in 15 is lower than 14 despite a bullish acquisition program; I assume they bought profitable and successful companies of course. A 10% margin on revenue is a fragile position when you’re tenant charges are about to evaporate and so might you’re sector leading commercial agency business?

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    2. Hillofwad71

      Hodge You are forgetting the £400m debt pile . This is  the warchest and the patient  is looking  far from healthy having spent tens of milions buying a disappearing turnover .  You can guarantee  there wont be a buyer  for LSH who will come close to paying anywhere near what was paid out  .You cant   pass the parcel  with commercial practices-the highflyers just walk .Just cast your mind back to DTZ who expanded by buying  commerical  practices like Donaldsons and they ended up writing the whole purchase price off .Same rules applied to Erinaceous .The only listed agents  who have  successfully integrated theri purchasesand survived  is Savills

      This is the last nail in the coffin for CWD  .There will be some extremely  worried bankers The SP will be heading south towards a £1 like an express train.

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  11. hodge

    very true and of course an ever tightening position on new property coming to market

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  12. WideEyedAgent71

    I am hearing of more branch closures across the UK – another 160 (possibly on top of the 59 already announced) Many in East Anglia have been told in the last few days and already closed their doors! Whole swathes of EA are now devoid of a Countrywide branch. In addition many high earners (and top performers) are being ‘let go’! Must be getting ready to sell???

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  13. princealbert83

    2.1m shares traded in 1 trade just before the market closed. Could be one of the major holders is adjusting their exposure?

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  14. princealbert83

    I shall sel the 5 shares I have first thing Monday. I shall use the £8.75 I hope to get back.Tesco have a selection box with my name on it!

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  15. edcookrealestate

    Interesting article and full of creative ideas.  Thank you for sharing the article. It’s very useful. Hope to hear more from you.

     

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