Countrywide shares suffered an excoriating day on the stock market yesterday, with their value halving.
The fall came as other stock suffered as the coronavirus continued to take its toll on markets around the world.
However, the hit to Countrywide’s shares followed the announcement that LSL is no longer contemplating a takeover.
The shares plunged immediately – and kept on falling, at one stage 54% down.
At close of trading, Countrywide shares were 81p, down 50.8%.
LSL shares were also badly hit, down 29.35% to finish at 174.5p.
Also in the doldrums were Purplebricks, down nearly 32% to a low of 35.25p, and Foxtons shares, falling almost 20% to 45.5p, but off their low of the day of 38.45p.
Franchise firm Hunters shares were down more than 15% to 44.5p, while those franchises normally associated with the more stable lettings markets also saw their shares hit.
Belvoir’s shares fell 18.5% to 108p.
The Property Franchise Group saw a relatively minor fall at 7%, taking the shares down to 177.5p.
Savills shares fell back 8% to 745p.
OnTheMarket had a bad day, with shares down more than 19% to 52.5p, but Rightmove shares dipped only 4.17% to 515p.
Comments (10)
It was a good agent once and if the Board could have stood aside and let someone else “have a go” it may have worked.
Unfortunately it is too little too late and cant survive the triple whammy. Interesting point surely that Rightmove will take a hit if it all goes t..s up wont they ? Oh wait-they will just put the charges up again…….agents at times are real suckers
Shares now trading at 60p – down another 25% this morning.
Super tough times. Peter Long’s biggest mistake was taking a year to fire Platt. He didn’t realise that she was clueless. People criticise CW but if you were Creffield or Long what would you do? Your options are seriously limited. You have no money to invest and your only real hope was a rising market to trade out of danger. In Jan this looked promising; in mid March it does not.
The sale to LSL was the right call and god knows where it leaves them now.
Yesterday this £495m turnover business was worth £26m.
The shares were down 99.48% on the 6 year high.
Mr London -You seem very forgiving
The BODS asleep at the wheel and too slow to react in every sense . Don’t excuse their part in CWD;s downfall
If it wasn’t for the crippling debt sanctioned and incurred unnecessarily CWD would have hay in the barn and coasting through today
They even raised a further £140m from shareholders which they have dissipated
The failed hybrid
Sat back and watched Platt remove time served high fee earners .Abdicated responsibility
Continued sanctioning purchases even as the tenants fee ban was on the horizon
Merged brands like Ferrari Dewe with the Thieves within nanoseconds of purchase disintegrating value
Created no synergy amongst the brands
They even bought back in shares on a number of occasions as they were plummeting
Made no room on the main board for talented property professionals from within
Not forgetting the lack of due diligence in agreeing a deal with Streaky who has no money
Worse still signed an amended credit facility which they are now in breach
To be honest they couldn’t do any worse
Agree.
It’s easy to blame Alison Platt but she left 2 years ago. There was also a lady called Sam Tyrer that actually managed the change. Search Youtube and listen to her overconfident and arrogant presentation. There was also a former FD who clearly didn’t manage the debt or the business and as above, bought businesses at any cost with borrowed money.
With hindsight the appointment of Alison Platt was almost certainly their biggest mistake and the ensuing car crash that eventually led to the almost total destruction of a once fine business.
If blame is to be apportioned it should be directed at the people responsible for appointing someone so clearly out of her depth and then giving her the brief to change the culture within the business which was considered by some to be out dated and unwilling to adopt change how ironic.
I should add that I met Alison once and found her quite charming and I did have some sympathy for her when she was thrown to the wolves as she was not the only decision maker during her tenure and believe it or not some of those individuals who rubber stamped some pretty poor decisions are still in place and happy to blame everything on her which is simply not the case in my humble opinion.
To be honest, the core trading estate agency and lettings business was on a downward curve from mid-2014; long before Alison Platt really and truly broke it…
“Peter Long’s biggest mistake was taking a year to fire Platt. He didn’t realise that she was clueless.” Really? Everyone else in the industry outside of CW could see that she was clueless almost from the outset, so if that’s the case it just goes to further prove how inept those at the very top of the CW tree are and goes quite some way to explaining the mess they are now in.
Yes It was a bit like pantomime with the crowd baying “She’s behind you” . The BODS operated in a bubble were so divorced from the rank and a file they didn’t hear the rumblings
Certainly she made a major contribution but the rot had already set in before her arrival as having borrowed millions buying up expensive revenue She just accelerated the mess
The sad reality is that all those who held shares worth £100k in March 2016 would be worth just £260 today. An astonishing destruction of shareholder value by the BODS .Ripped it to shreds .
Let’s not forget those will include loyal members of staff many of whom would have been reliant on those as a pension who have put their faith in the Directors .
Those looking ahead not only to the prospect of a comfortable retirement disappearing over the horizon with its backside on fire but potentially their jobs too. Coronavirus just adding salt to the wounds .
The irony is not lost is that many of the brands have been trading quite well this year some showing in excess of 70% of their portfolio already sold SSTC . It’s a particularly cruel blow to see that disappear into a vat of abortive costs incurred by the BODS in the failed sale of LSH and merger with lSL
Their futures thrown on the table now in a hign stakes poker game with the banks A huge human cost
No words for this arrogant set of inept BODS who have let everyone badly down but no doubt will quietly slip off the table with goldplated entitlements,reputations intact
The real winners here are those who sold their businesses to the gullible BODS for huge sums .
Shrewd to take the majority of payment in cash rather than shares The BODS actually borrowing monies to pay them many milli ons
A schoolboy error by the BODS as having no stake in the company their interests aren’t fully aligned . They aren’t taking one for the team It’s good night and god bless thanks for the cheque
Just ask the lads at BTW Shiells in Belfast who have sold themselves not once but twice enjoying bumper days from LSH in its various guises
It’s clear that the BODS have no sense of history