31st Jul 2019 11:11
(Alliance News) - Countrywide PLC said Wednesday it has continued to make financial and operational progress in the first half of 2019, marked by a substantially narrowed loss, despite a weak property sales market.
Shares in the estate agent were 12% higher at 5.03 pence in London on Wednesday.
For the six months to the end of June, Countrywide reported a pretax loss of GBP40.0 million, narrowed from GBP243.5 million a year before.
This was due to a sharp reduction in impairment charges and operating costs. Exceptional costs incurred in the period amounted to GBP41.1 million, compared to GBP223.0 million.
Adjusted earnings before interest, taxes, deprecation and amortisation more than doubled to GBP20.2 million from GBP9.9 million the prior year.
Total income meanwhile, declined by 4% to GBP290.6 million from GBP302.9 million, as all of Countryside's segments reported weaker performances for the period, aside from the business-to-business unit, which remained flat.
Operationally, Countrywide's total properties under management edged up 1.1% to 126,198 from 124,767 a year before, while the number of mortgages arranged also increased by 1.1% to 51,685 from 51,134.
The value of mortgages arranged increased to GBP9.8 billion from GBP9.5 million in the prior year.
Amid a weak market, Countrywide undertook self-help measures to reset its cost structure and to increase sales in the Conveyancing & Financial Services unit.
Looking ahead, Countrywide said these self-help actions are expected to aid adjusted earnings before interest, taxes, deprecation and amortisation for the second half of 2019. The board expects its full-year performance to be in line with management expectations.
"The fundamental changes we have made to our business in the last 18 months are beginning to bear fruit. Our register and pipeline of agreed sales is healthy, and we continue to rebuild market share, re-establishing our market-leading position across both Sales and Lettings. The market, however, remains weak, affected by political and Brexit uncertainty," said Executive Chair Peter Long.
"In view of this environment, during the first half, we took a series of further self-help actions to accelerate and reset our cost structure in order to reflect current activity levels with significant benefits starting to flow through in the second half."
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