Countrywide shares shoot up despite losses as City looks impressed with turnaround plan

Countrywide shares shot up 10.5% yesterday after a trading statement which showed both widening losses – but also optimism about its turnaround.

The shares finished the day at 10.8p, the first time this year they have topped 10p.

Despite the 10% rise, the share price has been so low that yesterday’s gain was only about 1p – and is almost 75% down on a year ago.

Countrywide, due to issue its results for last year early next month, said in the update that it expects to report total group income of £627m, down 6.7% from the £672m of revenues in 2017.

Adjusted profits (EBITDA) are set to almost halve from £65m to £33m.

However, the business said it had made “significant progress” in its turnaround plan.

LSL shares also rose yesterday, by just over 2% to 245p.

The City has shown no objection to LSL’s plans to cut Your Move and Reeds Rain branches from 404 to 208, in a restructuring which will cost £15m but is set to improve the two chains’ operating profits.

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2 Comments

  1. Hillofwad71

    Market probably expecting worse taking a lead from other recent updates. The downward  spiral  halted but still have it all to do for a significant turnaround .Not surprising a rally in the  SP though

    However ,the original sponsors of the capital raise last summer were unfortunately left with a quantity of unsold shares .I should imagine now the SP has risen over 10p (par) they will be looking to take advantage of jettisoning some which might halt the progressof the SP

    Still the millstone debt of £70m and unlikley to be  recommencing dividends to shareholders soon

     

    What was noticeable B2B revenue was down .This is Lambert Smith Hampton ,the jewel in the crown

     

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  2. Jonathan.Welford

    A dead body bounces when it falls from a fair distance (allegedly…)

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