Shares in Countrywide sank to an all-time low of 8.85p each yesterday during volatile trading that saw its stock sink by over 12% as the company admitted Purplebricks is here to stay.

Investors and traders reacted badly to its latest results for 2018 which revealed losses up by 5.5% to £218 million, revenues down by 7% overall and profits halved to £32.6 million.

This created a rush to sell shares in the company and prompted its stock price to nose-dive. It then rallied after a webcast by its senior management team, who sought to reassure investors despite the bad news.

During the investor webcast Executive Chairman Peter Long (pictured, above) described the business as having previously been ‘in disarray’. He said the foundations for growth had been laid and that 2018 was a reset year.

“We have a great business which is run by experts,” he said. “We’ve now got a very strong management team as well as depth and breadth within our branch network.”

During the presentation it was announced that 150 central IT staff had left the business, helping reduce costs. Other details revealed include that ‘long-dated onerous leases’ among its 800-branch network will cost it £7 million up until 2026.

It was also revealed that its former Oxford Street London HQ had been costing £2 million a year to operate.

Hybrid competition

Long and his MD Paul Creffield also passed comment on the company’s online rivals, admitting that Purplebricks was ‘here to stay’ but that the rest of the hybrid agency market had either disappeared or failed to gain significant market share.

“No-frills online agents have not achieved the market penetration originally envisaged,” said Long.