Connells Group’s rising profits prove Countrywide takeover ‘a success’
CEO David Livesey says the two organisations have increased their combined market share of instructions in the short time since the acquisition.
Connells Group has announced increased pre-tax profits for the first half of the year rising from £17.2 million last year to £80.2 million this year.
The figures are the first it has released following the company’s acquisition of Countrywide in March and include its profits.
But Connells has also had several lucrative windfalls this year including £29.3 million in gains from its interests in both TM Group and Fixflo. The latter was sold recently to a German proptech firm.
The half-year results also include tax charges relating to amortisation of Countrywide’s intangible assets of £38.3 million and acquisition costs of £2.1 million.
Excluding these one-off costs, Connells Group’s underlying EBITDA for the half-year totalled £112.6m, including Countrywide since its acquisition, up from £49.2 million last year.
“Importantly, we have improved our combined market share of instructions in the short time since the acquisition,” says Connells Group CEO David Livesey (pictured).
Connells says the ‘exceptional’ performance is down to the strong housing market this year, aided by the stamp duty holiday and that its exchanges were 34% higher than during the same period in 2019, pre-Covid.
The company says confidence in the housing market is strong, with buyer registrations up 49% on H1 2019 helped by low interest rates and competitive mortgage products, but that supply remains a problem.
“We have delivered another strong financial performance and increased the scale of the Group and our capabilities significantly with the acquisition of Countrywide,” says Livesey.
“Bringing together these two great businesses will enable us to provide a more integrated and enhanced suite of services to customers and clients.
“Countrywide’s branch network is a key asset and we will continue to maintain and enhance its current branding and service offering, while leveraging Connells’ track record of positive investment in people and technology.”
A small experienced managemet team that have worked together for years. Who focus on the core nature of estate agency, who do not become distracted from always looking at the profit and loss analytics, and execute big changes in a co-ordinated and professional way, just shows what can be done if the right team is in place.
The only thing I wonder is an IPO on the cards? If it was I would be buying some shares, as whatever the weather this group has a solid stategy. And they are not a client, but as a real estate and proptech anaylst they have all their ducks very much aligned. Strategy comes fom wisdom and experience and delivering results.