Speculation over job losses at Countrywide as shares get second day of clobbering

There is speculation that a new raft of redundancies is going ahead at Countrywide, after shares yesterday fell to an all-time low.

Sources have told us that a new consultation has been announced internally, with redundancies likely at regional and management level, amid a re-structure.

Casualties are now believed to include very senior people at John D Wood, and Bairstow Eves & Mann London, with sources naming specific people – at least one of whom appears to have left the company overnight.

One of the sources described the latest round of sackings as ‘massive’ and a ‘bloodbath’.

Countrywide has confirmed that there are to be more branch closures and an on-going cull of brands.

Of the rumoured job losses, a Countrywide spokesperson told EYE: “We don’t comment on speculation.

“As you know, we provided an update to markets on the progress of Building our Future as part of our Q3 trading update earlier today, noting that we made good progress this year with our strategy.

“We will continue to keep our people, customers and the market updated on our progress as appropriate.”

The Q3 trading trading update, issued yesterday, was not however warmly greeted by the City.

Countrywide’s share price fell heavily, to a record low, after the double whammy of the fees ban and the Q3 trading update, which revealed a collapse in its pipeline that will have implications for its performance to the end of the year.

By the end of September its pipeline business across the UK was down 16% on a year ago, and in London down 26%. Countrywide also said that exchanges fell 29% in the three months to the end of September compared with the same period last year.

The City reacted negatively. The shares were clobbered for the second day running and yesterday tumbled 12.89% to 169.20p, and at one point hit 165.90p.

The shares hit a 52-week high last December of 428.40p.

Yesterday’s price meant that Countrywide’s shares are now some 48% down on six months ago, 58% on the year to date, and 62% down on three years ago.

Meanwhile, analysts at brokers Peel Hunt said the fees ban, if introduced immediately, would hit Foxtons’ pre-tax profits next year to the tune of 11.4%, and Countrywide’s by 8.3%.

Perhaps unsurprisingly, Foxtons’ shares also had a bumpy second day on the stock market yesterday, following the fees ban, falling 3.25% to stand at 102.25p – almost half the 52-week high reached in January of 201.50p, and down 58% in the year to date.

A spokesperson for Foxtons said of the ban: “This was an unexpected announcement and the details and timing of the new policy are not yet known. As we get more clarity, we will review the impact to our customers and on our business.”

There was misery too for Belvoir, with an 8.3% fall to 112.2p, while its close competitor Martinco saw 10.71% wiped off its share price, down at 128.50p.

Savills shares went down 0.71% and LSL shares fell by just under 1%.

Purplebricks bucked the trend, with its shares going up 2.75%. However, at 112.50p, they are now not far off their launch price of 100p.

x

Email the story to a friend



13 Comments

  1. AgentV

    One company cutting jobs as profits fall, one company recruiting on top of huge losses…..one company keeping its head down the other being aggressively optomistic. Any views on which will weather the storm long run?

    Report
  2. Philosopher2467

    I understand that another restructure has occurred and some more senior and longstanding people have gone. Those that remain must clearly be in agreement with the direction the company is moving and keen to be part of it going forward. I wonder at what point it will dawn on everyone that two restructures in successive years demonstrates that the management are beyond their experience. There is a way that things can be turned around; sadly, I do not believe that what’s about to become apparent is it.

    Report
    1. ashleyB64

      Those that remain must clearly be in agreement…

      That’s just the point – there’s no one left in the London team!

      Report
  3. Eamonn

    “We Don’t comment on speculation”.   That will be the rumour is true then.

     

     

     

    Report
  4. smile please

    The board, senior management, M.D”s, Regional Directors have all but changed since Platt took over.

    The massive erosion of share price. The loss of market share. Turnover and profit decline. All under her watch.

    She has been given ample time to install her “Vision”

    It needs to start paying off soon before it is too late ….

    Report
    1. mrharvey

      She’s actually an insider from Belvoir, sent to sabotage CW.

      Report
      1. smile please

        Agent Platt 😉

        Report
        1. mrharvey

          Double-Oh-Nothing.

          Report
  5. Thomas Flowers

    To cause such ‘disruption’ Platt must surely have something up her sleeve?

    Is there more to her hybrid aspirations than meets the eye?

    The independent sector has always been the thorn in CW’s side as they were able to charge a more competitive fee than many of those corporate brands? Are the tables about to turn?

    Surely, the secret to the future success of any on line only or hybrid brand is to find a way of marketing their cheap fees without the huge national advertising costs which are preventing them from making a profit?

    What these ‘disruptors’ really need is access to lots of property related data…… lots of  ‘real time’ data?

    A good way of keeping the independent sector disunited, is to sell, for addition profit, all that valuable data via prospecting products?

    Who is more likely to be able to afford  such valuable prospecting data on top of those unfair advertising rates?

    Certainly not the small one branch local estate agent?

    Remember this link below? Cut and paste this link into your browser if it does not work.

    http://www.propertyindustryeye.com/agents-anger-as-rightmove-partners-advertises-purplebricks/
    In my humble opinion, it is the main two portals who are ‘disrupting’ the industry…….and we are paying them to do so!
     

    ‘Disruptors’ is perhaps the wrong terminology those other brands use frequently.  Is ‘diluters’ a more accurate description?

     

     

     

     

     

     

    Report
    1. AgentV

      A lot of good ideas Thomas. I have a few ideas of how the independent sector can successfully harvest a lot of data at a reasonable cost….but not for posting in open forum unfortunately. Contact me if you want tho talk more.

      Report
  6. colmac

    The ‘Building our Future’ strategy looks to be going to plan;  Q2 get rid of any estate agents, Q3 past bankers, Q4……??

    Report
  7. AgencyInsider

    With the economic climate that is beginning to affect the market and agents – I have put up a new topic on the PIE arena forums asking if anyone who voted ‘Leave’ in the EU referendum would now vote differently. This is for interest, not to open a debate about the merits or otherwise of Brexit.

    Report
    1. Allun79

       

      NEVER,

      The only way we can see how the market will truly react is when article 50 is signed and put in motion.

      The reason for this years slump are factors outside the control of any agent or referendum. We have seen this year the rise in stamp duty for investors which has taken away a big portion of the market away. When will the politician learn that the best thing they can do with the property market is leave it alone. Changing your views on leaving europe in my opinion would be the same as selling your birth right for a bowl of soup!

       

      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.