11th May 2006 07:00
11 May 2006 Countrywide plc AGM Statement At the Countrywide plc Annual General Meeting to be held at Panmure Gordon,Moorgate Hall, 155 Moorgate, London EC2M 6XB, at 9.00 am on 11 May 2006, theChairman, Christopher Sporborg, CBE, will make the following statement:"We are very pleased to be able to report that thus far this year the financialresults of all our operating divisions have exceeded our own internalexpectations.In our house agency business, invoicing of fees for the first four months ofthe year at ‚£92million, was 40% higher than last year. At the end of April, thepipeline of sales in the hands of lawyers had increased by some 46% from thestart of the year, to ‚£92.3million.This was some 27.1% higher than twelvemonths earlier, and represented an all time high level for the group. Houseprices across the group remain reasonably stable at around ‚£184,000, and theaverage fee in the first four months of the year was ‚£3,130 per transaction.Activity in our lettings business is good both in London, where stock is invery short supply, and the provinces. Rents display small upward movements inmost areas.Substantially increased home sales activity has lifted sales of financialproducts. The number of exchanged mortgages placed with our mortgage panel tothe end of April has increased by 46.7% over last year, whilst life policiesplaced on risk have increased by 81%.Countrywide Surveyors had excess capacity throughout the whole of 2005. As 2006has developed, the excess has begun to be taken up, and currently the divisionis working at approaching full capacity. Indeed, in recent weeks, in some partsof the country, we have again found ourselves having to panel out some work tothird party surveyors.Countrywide Property Lawyers has been much encouraged by the success to date inthe installation and use of its new computer system, which is already handling40% of active cases. As a consequence, the volume of new instructions retainedwithin the business has been rapidly increasing over last year's levels, whilstthe combination of a higher opening pipeline and much reduced operating costshas cut trading losses considerably from those suffered in 2005. Furthercontracts have been won by our remortgage conveyancing business, but volumesthrough the unit remain modest.Business is reasonably strong at H2O Homes Overseas Countrywide in Spain, whichwe hope will be profitable in 2006. Activity at TM Property Services, in whichwe now hold a 25% stake, is strong and the financial results are encouraging.Our current cash position and level of cash generation are both good. Despitethe repurchase of a further 1million shares, bought into treasury during March,our cash balance at the end of April was ‚£13million.Predicting the state of the UK housing market is a widely practiced, butnotoriously difficult task.Our view is that, provided macro economic conditions remain reasonably benign,the housing market will be sufficiently buoyant in the remainder of the year toenable Countrywide to comfortably achieve market expectations for 2006 netearnings.We intend to announce our half-year results on Tuesday 15th August 2006."For further information please contact:Countrywide plcChristopher Sporborg, Chairman Tel: 020 7242 5300Harry Hill, Group Managing Director Tel: 01376 533 700ENDCOUNTRYWIDE PLCRelated Shares:
CWD.L