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Connells Group reveals slump in revenues and profits

Company has blamed harsher trading conditions so far this year for the results, which its CEO says are 'credible'.

Nigel Lewis

connells

Connells has today revealed its results for the first six months of the year within a relatively short statement for what is now the UK’s largest estate agency business.

The Group, which now includes Countrywide, maintained its 10% market share across its 1,250 estate agency branch network and ended the period with a sales pipeline up 11% on the prior year, showing continued strong buyer demand.

But despite this upbeat assessment, nevertheless revenues decreased by 13% on a like-for-like basis, as a result of more challenging housing market conditions impacted by lack of stock, slow pipeline conversion and wider economic headwinds.

Consequently, the Group reports an underlying EBITDA of £62.6m (H1’2021: £112.6m), representing another creditable result.

David Livesey, Connells, imageDavid Livesey (pictured) Connells Group CEO, says, “The market has been less frenetic in recent months following the exceptional conditions of 2021, where we saw a push for completions ahead of the stamp duty holiday deadline, pent up demand and low interest rates leading to record high transaction levels.

“Although the UK economic outlook is unsettled with the cost of living and interest rates rising, plus the war in Ukraine, there remains strength in an active housing market,” he says.

“With the imbalance between demand and supply still remaining the key market feature, and a build-up of sales transactions working their way through the system, we are encouraged by our strong sales pipeline.

“Connells Group has successfully worked through all types of markets, and our outlook for the latter half of this year remains positive. Our people thrive on challenge and our breadth of business will allow us to maintain our market-leading position.”

August 5, 2022

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