Countrywide digital roll-out helps it retain market share
But like its fellow PLCs softening sales market continues to drive down profits.
The half-year results for Countrywide reveal it has hung on to market share despite an overall contraction in the UK sales market, helped mainly by the roll-out of its digital ‘low fee’ proposition.
Its market share dipped slightly from 5.1% to 4.9% but it increased its slice of the mortgage distribution market.
The company also reduced costs by £19 million, helping generate £11.8 million in cash between January and June, up from £1.6 million last year.
“We are building a stronger business for our future and remain on track with our goals to broaden our digital capability, reduce our operating cost base and strengthen our balance sheet,” says CEO Alison Platt (pictured, left)
“Based on our current performance and the outlook for housing transactions in the UK, we expect our results and our leverage for the full year to be within the range of market expectations.”
But like Foxtons which also reavealed half-year results today, the softening sales market helped reduce income at Countrywide by 10% during the first half of the year, and profits are down by 26%.
Tough year for Countrywide
“As anticipated, the first half of 2017 was tough for the Group compared to the same period last year given the high levels of housing transactions brought forward in time as a result of the stamp duty changes and the EU referendum,” says Alison.
“We continue to serve our customers better, and this manifests strongly in our ability to win repeat business in lettings.
“Our digital proposition in sales is also proving to be an important element in bringing choice and attracting more applicants and vendors to our brands.”
The company’s two non-property business continue to perform well including its surveying division which increased its profitability and increased the number of mortgage valuations it completed, while an enlarged telephone sales team helped grow the company’s share of the mortgage market.
Countrywide also reduced its debt during the first half of the year, the results show, helped by a £37 million share placing earlier this year, and the decision not to pay dividend.
