EYE NEWS UPDATE: Connells Group announces half year revenue down 13%

Connells Group maintained its 10% market share across its 1,250 estate agency branch network and ended the period with a sales pipeline up 11% on the prior year, showing continued strong buyer demand.

However, revenue decreased by 13% on a like-for-like basis, as a result of more challenging housing market conditions impacted by lack of stock, slow pipeline conversion and wider economic headwinds.

Consequently, the Group reports an underlying EBITDA of £62.6m (H1 2021: £112.6m).

David Livesey, Connells Group CEO, said:

“The market has been less frenetic in recent months following the exceptional conditions of 2021, where we saw a push for completions ahead of the stamp duty holiday deadline, pent up demand and low interest rates leading to record high transaction levels.

“Although the UK economic outlook is unsettled with the cost of living and interest rates rising, plus the war in Ukraine, there remains strength in an active housing market.

“With the imbalance between demand and supply still remaining the key market feature, and a build-up of sales transactions working their way through the system, we are encouraged by our strong sales pipeline.

“Connells Group has successfully worked through all types of markets, and our outlook for the latter half of this year remains positive. Our people thrive on challenge and our breadth of business will allow us to maintain our market-leading position.”

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2 Comments

  1. dailyrant68

    Can’t see things improving

     

    wonder if the acquisition of CWD was indeed such a great idea -cost control at Leighton Buzzard Towers will now be priority 1

     

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    1. Robert_May

      Agreeing sales is one thing, having people who want to move is another but no agency in the industry has any control or influence  over an artificially  stimulated market one year followed by a correction the next.

       

      In small firms the corrections are put down to “its gone a bit quiet” in larger firms the peaks and troughs are more apparent, more closely scrutinised and then made available for everyone to comment on.

       

      If people can’t find or can’t afford somewhere to move to – they’re not moving, they’re not paying fees

       

      There are bound to be change management issues bedding CW into Connells but that is something to be expected in a group as large as the one that’s been formed.

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