Countrywide has revealed a significant cost reduction plan and admitted that its IT systems are ‘aged’ and require a complete overhaul over the next three years, its latest update on the company’s revival plan has revealed.
Its detailed three-year turnaround document includes plans to reduce IT costs by 35%, contact centre expenditure by up to 20% and reduce costs across all its businesses by up to 10%.
These cost cuts will add approximately £20 million to its annual pre-tax profits by 2021, its Annual Report document claims.
Countrywide also makes some punchy predictions for growth between now and 2021 including increasing complementary service income from each transaction.
This will increase from its current 44p per every £1 of estate agency services to 55p; increasing the number of customers who remortgage through Countrywide; growing its B2B surveying business and becoming a larger player in the new homes market.
Revenue from complementary services – which include mortgages and conveyancing – are already growing, increasing by 16% during 2018 compared to the year before.
The two operations are one of the few areas of growth within Countrywide at the moment. The value of mortgages arranged last year increased by 13% to £20.3 billion while the number of surveys and valuations increased by 5% to 381,893.
“We have been encouraged by the progress made during 2018 in resetting the business as part of our return to growth strategy,” says Countrywide’s Executive Chairman Peter Long (pictured, top). “As a group we are in a stronger position that we have been for some time.”