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| Estate agent group Countrywide's shares dive as profits fall | Estate agent group Countrywide's shares dive as profits fall |
| (about 2 hours later) | |
| Shares in Countrywide, the UK's largest estate agent group, lost 20% after it warned of tough times in the market. | Shares in Countrywide, the UK's largest estate agent group, lost 20% after it warned of tough times in the market. |
| Countrywide, whose brands include Bairstow Eves and Gascoigne Pees, made a £208.1m after-tax loss in 2017, versus a £17.5m profit in 2016. said about 150 head office jobs would go. | Countrywide, whose brands include Bairstow Eves and Gascoigne Pees, made a £208.1m after-tax loss in 2017, versus a £17.5m profit in 2016. said about 150 head office jobs would go. |
| The firm has been hit by a slowdown in the housing market as well as the rise of online agents such as Purplebricks. | The firm has been hit by a slowdown in the housing market as well as the rise of online agents such as Purplebricks. |
| But early afternoon the shares had pulled back to stand at about 6% down. | |
| The profit figures were also dragged lower by one-off costs as Countrywide continued to restructure the business. | The profit figures were also dragged lower by one-off costs as Countrywide continued to restructure the business. |
| But even with these are stripped out, pre-tax profits more than halved to £25.2m, from £52.7m in 2016. | But even with these are stripped out, pre-tax profits more than halved to £25.2m, from £52.7m in 2016. |
| Countrywide, which called 2017 "a disappointing year", said trading had remained under pressure since the start of 2018 with a pipeline of work "significantly" below a year earlier. | Countrywide, which called 2017 "a disappointing year", said trading had remained under pressure since the start of 2018 with a pipeline of work "significantly" below a year earlier. |
| Cost-cutting drive | Cost-cutting drive |
| Its previous chief executive, Alison Platt, left last month after a profit warning and announcement of a further restructuring of the business which included investment in digital operations to compete with online rivals. | Its previous chief executive, Alison Platt, left last month after a profit warning and announcement of a further restructuring of the business which included investment in digital operations to compete with online rivals. |
| Countrywide said on Thursday that it was shedding about 150 of its 450-strong head office team as part of a cost-cutting drive. The firm employs about 8,000 nationwide. | Countrywide said on Thursday that it was shedding about 150 of its 450-strong head office team as part of a cost-cutting drive. The firm employs about 8,000 nationwide. |
| The results announcement laid bare the problems in its core sales and lettings arm, where earnings sank 47% to £14.9m. | The results announcement laid bare the problems in its core sales and lettings arm, where earnings sank 47% to £14.9m. |
| Across sales and lettings in London, earnings fell 44% to £11.5m. | Across sales and lettings in London, earnings fell 44% to £11.5m. |
| Executive chairman Peter Long admitted that the patience of investors had been "sorely tested". The company will not be paying a dividend to shareholders. | Executive chairman Peter Long admitted that the patience of investors had been "sorely tested". The company will not be paying a dividend to shareholders. |
| He said the group was working to resolve poor performance in sales and lettings, but admitted it would "take time". | He said the group was working to resolve poor performance in sales and lettings, but admitted it would "take time". |
| "We believe these business units are fixable, know what we have to do to restore them and the steps to take that should result in a return to profitable growth." | "We believe these business units are fixable, know what we have to do to restore them and the steps to take that should result in a return to profitable growth." |
| Some of the problems facing the housing sector were underlined on Thursday with news that the number of homes on estate agents' books had dwindled to a new low. | Some of the problems facing the housing sector were underlined on Thursday with news that the number of homes on estate agents' books had dwindled to a new low. |
| The Royal Institution of Chartered Surveyors said average property stock levels per branch on agents' books fell to a new record low of just under 42, as inquiries from new buyers, new instructions from sellers and newly-agreed sales continued to drift lower in February. | The Royal Institution of Chartered Surveyors said average property stock levels per branch on agents' books fell to a new record low of just under 42, as inquiries from new buyers, new instructions from sellers and newly-agreed sales continued to drift lower in February. |
| New buyer inquiries fell for the 11th month in a row, while sales trends have remained similar over the past six months, Rics said. | New buyer inquiries fell for the 11th month in a row, while sales trends have remained similar over the past six months, Rics said. |