Agencies & People
News covering the businesses, activities, people and personalities in estate agency and letting agency and wider residential property industry.
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Countrywide share price crashes as £129m debt refinancing deal is revealed
Countrywide’s share price has crashed to an all-time low after it revealed plans earlier today of a multi-million-pound share issue to refinance its debt, and despite signs of improving business performance. Earlier this morning its share price dropped to 14p after opening this morning at 25p. Only three weeks ago it was trading at 55p a share and a year ago, £1.56p. The share collapse follows details of its plans to raise £129 million via two share offers, one for £111.4 million and a second for £28.6 million. This share placing must be approved by shareholders at a special meeting on the 28th August before it can proceed. But the company says if approved the cash raised will be used to reduce its current debts by 60%. The Capital Refinancing Plan is in part designed to improve its results by clearing its considerable loan interest payments off the balance sheet. Business turnaround? The announcement was accompanied by an upbeat summary of Countrywide’s ‘turnaround plan’. This reveals an improving sales pipeline which, although still down 9% year-on-year, is an improvement on six months ago when the pipeline was down by a quarter. Countrywide also says the number of properties it’s marketing…
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Get ready for 0.25% base interest rate rise tomorrow, says Nationwide
Leading lender Nationwide says tomorrow's expected base interest rate of 0.25% to 0.75% is unlikely to impact the property market.
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Strutt & Parker returns to ZPG’s arms three years after co-launching OTM
One of the UK's most venerable estate agents and OTM founder Strutt & Parker has announced it will re-list with property portal ZPG.
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Lettings and financial services help LSL pull through as sales division struggles
LSL's latest results for the first half of 2018 reveal a struggling sales division but better performances by lettings and mortgage divisions.
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Nottingham selective licensing scheme a “shambles” says leading letting agent
A selective licensing scheme in Nottingham due to come into forc on 1st August 2018 faces open revolt among local landlords and agents.
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Foxtons makes its first loss as shrinking London sales market decimates revenues
Foxtons says it made a loss over the past six months as London’s difficult sales market drove down its turnover by 9% to £53 million during the first six months of the year. The unprecedented £2.5 million loss before tax compares to a £3.8 million profit during the same period last year. Its half yearly interim results make for grim reading, although at least its lettings business is holding its own. 23% sales decline Revenue created within lettings only dropped by 1% to a revenue of £31.7 million, compared to a 23% decline in sales revenue to £17.2 million. The rest of its revenue came from the firm’s Alexander Hall mortgages business, which turned over 4.1 million and is surviving on remortgaging activity rather than property purchases. Comments within the report suggest that, while Foxtons is facing harsh trading conditions, it is likely to be in the same boat as other London estate agents. Foxtons says it remains the market leader in both sales and lettings despite the poor figures, suggesting there is little that CEO Nic Budden and his leadership team can do. “The property sales market in London is undergoing a sustained period of very low activity levels with…
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Revealed: Why Howard Cundey threw in towel on the high street
The Negotiator has spoken to an estate who competes locally with Howard Cundey, the estate agent that today announced its high street operation is to be wound up after 50 years. Howard Cundey, which has ten branches across Surrey, Sussex and Kent, today announced that although its high street operation would had been unable to adapt to market changes, its existing hybrid/online operation would continue. One agent who competes with its branch in Forest Row in Sussex but who doesn’t want to be identified, says the writing had been on the wall for some time and that three offices were due to be closed this year even if the firm had not decided to throw the towel in on the high street. Big problem “We’ve had a big problem in this area because Howard Cundey some time ago decided to go hybrid and list properties for £600,” he says. “So for two years now we’ve had virtually no stock but I think they realised it wasn’t going well; many of their best staff had already left. “We’ve been playing a waiting game to see if they would either go back to being realistic on fees or go under. “Their Oxted…
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‘Next Usain Bolt’ Reece Prescod says his Plan B career is to be an estate agent
Promising young athlete and 100m sprinter Reece Prescod was preparing to join the property industry before hitting the big time.
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Five estate agents pool their resources and rebrand under one name
A group of estate agents in the South East has rebranded to Alexander & Co.
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Sunnier outlook! Countrywide revises previously gloomy earnings predictions upwards
Earnings at beleaguered estate agency giant Countrywide have been better than expected, its latest surprise financial update reveals.
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