27th Feb 2014 12:41
LONDON (Alliance News) - Estate agency group Countrywide PLC Thursday said it swung to profit in 2013 as Chief Executive Grenville Turner said he will step down this year and become non-executive chairman.
Turner's move comes just months after former chairman Bob Davies stepped down for personal reasons. A search for Turner's successor has commenced.
The company, which re-listed in March after a six-year hiatus, posted pretax profit GBP38.1 million for the period ended December 31, compared with a loss of GBP10.8 million a year earlier, as revenue rose to GBP584.8 million from GBP524.7 million.
Countrywide said most of its divisions saw growth, led by the central services division which multiplied revenue to GBP2.8 million from GBP960,000 in 2012, followed by a 15% increase for the lettings business at GBP112.5 million from GBP97.8 million a year earlier.
The firm's biggest arm, the estate agency business, saw revenue rise 5% to GBP193.0 million from GBP184.6 million a year earlier.
Countrywide said 2013 saw an upturn in market volumes, with the estate agency business increasing house exchanges by 8% compared with 2012. Market conditions improved gradually throughout the year, helped by improving economic sentiment, better credit markets, and government support for UK housing, it added.
The firm said adjusted earnings before interest, taxation, depreciation and amortisation rose to GBP86.6 million from GBP63.0 million in 2012.
Adjusted earnings is calculated on profit for the year before exceptional items, amortisation of acquired intangibles, and share based payments.
At the end of the period the company's net assets per share stood at 237.5 pence or a total of GBP521.2 million, up from GBP242.3 million a year earlier. Countrywide said this was driven by funds generated from its initial public offering, net profit for the year of GBP34.3 million, and an increase in fair value of its GBP27.5 million investment in property website Zoopla.
Interim chairman, David Watson, said the group delivered an "excellent" set of results for 2013 - its first since its March IPO.
"Significant financial progress was achieved through the year as recovery within the housing market broadened and performance across all our divisions and regions improved," he said. "Strengthening activity levels are evident in our January 2014 results and pipelines, plus external indicators would also show that significant growth in profitability should be sustained through the year ahead."
The firm declared a final dividend of 6.0 pence giving a total dividend for the year of 8.0 pence.
The stock was trading at 613.50 pence Thursday morning, down 10.00 pence or 1.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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