Countrywide shares drop 20% in a day to all-time low

Countrywide shares dropped by 20.3% yesterday following its trading update revealing what it described as “disappointing” results and warning of lower-than-expected profits.

The share price tumbled by 16% from £1.38p a share to £1.14p a share in the first hours of trading but rather than rallying, continued its downward trend to finish at £1.10p, its lowest price ever.

Countrywide’s shares have dipped to near this in recent months – £1.07p in September and £1.08p in November both last year.

The current price is an 83% reduction from its peak of £6.94p in November 2014.

City concern over the company’s performance and its inevitable drift downwards have been driven largely by a deteriorating sales market, its cumbersome size following years of energetic market share grabbing, an expensive branch and staff reduction programme, and the encroaching threat of hybrid agents such as Purplebricks within it score middle market.

Despite attempts to fight back with its own hybrid offering, yesterday’s results suggested Countrywide has a while to go before its on an even keel.

Its results revealed a “disappointing fourth quarter performance” in sales and letting, where income dropped by 14% last year.

Countrywide shares

But it wasn’t all grim news yesterday. Countrywide’s business-to-business operation, which includes services such as surveys, did well last year and saw its profits rise by 14% to £36 million.

And its mortgage operation, which includes Mortgage Bureau and Mortgage Intelligence channels, is beginning to win business from outside the branch network and these enjoyed ‘double-digit’ growth. But lower volumes from its estate agency network helped reduce profits by 11.5%.