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| Countrywide shares fall nearly 30% on profit warning | |
| (about 9 hours later) | |
| Shares in Countrywide, the UK's largest estate agent group, have fallen nearly 30% after it issued its second profit warning this year. | Shares in Countrywide, the UK's largest estate agent group, have fallen nearly 30% after it issued its second profit warning this year. |
| Countrywide, which has brands including Bairstow Eves and Gascoigne Pees, said it expected first-half earnings to be about £20m lower than last year. | Countrywide, which has brands including Bairstow Eves and Gascoigne Pees, said it expected first-half earnings to be about £20m lower than last year. |
| "We do not expect this shortfall to be recovered in the second half," it said. | "We do not expect this shortfall to be recovered in the second half," it said. |
| It said conditions in the housing market continued to be "subdued" and deals were taking longer to complete. | It said conditions in the housing market continued to be "subdued" and deals were taking longer to complete. |
| 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. |
| Countrywide added that it was looking to raise "additional equity finance" with the aim of cutting debt by 50%. | Countrywide added that it was looking to raise "additional equity finance" with the aim of cutting debt by 50%. |
| Its share price fell 28% to 56.5p. | |
| Chief executive Alison Platt left in January after the previous profit warning. Chairman Peter Long became executive chairman following her departure. | Chief executive Alison Platt left in January after the previous profit warning. Chairman Peter Long became executive chairman following her departure. |
| In March, shares slumped after the company announced that pre-tax profits for 2017 had more than halved to £25.2m, from £52.7m in 2016. | In March, shares slumped after the company announced that pre-tax profits for 2017 had more than halved to £25.2m, from £52.7m in 2016. |
| At the time, it said 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. | At the time, it said 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 is not the only estate agent to be suffering as the housing market hits tough times. | Countrywide is not the only estate agent to be suffering as the housing market hits tough times. |
| Earlier this year, another chain, Foxtons, reported a slump in profits as it warned that activity in the London housing market was near historic lows. | Earlier this year, another chain, Foxtons, reported a slump in profits as it warned that activity in the London housing market was near historic lows. |
| Foxtons said it expected "trading conditions to remain challenging during 2018", with sales anticipated to be lower than last year. | Foxtons said it expected "trading conditions to remain challenging during 2018", with sales anticipated to be lower than last year. |