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Connells Ea For Sale

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According to the Sunday Times some parts of the business are being 'groomed for disposal'. Watch this space!

http://www.estateagenttoday.co.uk/News/Sto...e=news_features

News StoryConnells denies it has been put up for sale

Wednesday 10th June 2009

Connells has categorically denied there is any truth in reports that it has been put up for sale by its parent company, Skipton Building Society.

It says the rumours are ‘twaddle’.

A report at the weekend said that Skipton is building up its war chest to fund takeovers of some of its struggling rivals.

The Sunday Times claimed Skipton is considering a sale of at least three of its non-core businesses to raise the cash – Connells, credit check business Callcredit, and mortgage arm HML.

The article said all were being ‘groomed for disposal’.

But Stephen Shipperley, Connells group executive chairman, said: “It is our usual practice to offer ‘no comment’ on market speculation such as this. However, on this occasion I want to unequivocally state that the article is twaddle and Connells is most definitely NOT for sale.

“As ever, we are purely focused on making the best of the recovering housing market, so we can well do without the distraction of unfounded market rumours.â€

However, this is the second time in recent months that Connells – arguably the most successful of all the UK agents – has apparently taken issue with its parent, suggesting that there could be cracks in the relationship.

In February, Skipton released results saying that Connells made £10.4m profits in the last financial year, down from £59.7m.

Days later, Connells disputed the results. It said it wished to ‘clarify’ the results, saying that it had really made profits of £37m.

Shipperley said then: “The £37m profit is from the whole of our business.

“If you were to exclude the profit we made from the sale of our Rightmove shares and one-off profits of a non-trading nature, then the profit figure would still be over £10m.â€

He went on to stress that the £10m profit figure quoted by Skipton was after the deduction of all costs and provisions relating to measures such as branch closures – of which there were 25 ¬– and staff redundancy costs which Connells made during 2008.

Founded in 1936, the Connells Group is now the second largest estate agency network in the UK after Countrywide, having purchased the Sequence group in 2003.

Parent company Skipton suffered last year because of its £11m exposure to the Icelandic banking system. It was also stung by having to provide £16.3m towards the FSA compensation scheme set up to rescue savers in Bradford & Bingley and other banks.

In 2007, Skipton made group profits of £163.9m, but these fell to £22.5m last year.

This week, David Cutter, chief executive of Skipton, refused to comment on speculation about a possible sell-off.

But he added: “However, we have always said that, as a diversified group business, we have a wide range of options available to us.â€

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I was totally messed around by one of their agents, he was a complete liar. So if this somehow results in him being made redundant then I will be delighted.

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In 2007, Skipton made group profits of £163.9m, but these fell to £22.5m last year.

Expect Skipton are selling Connells as they need the money .......

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I was totally messed around by one of their agents, he was a complete liar. So if this somehow results in him being made redundant then I will be delighted.

How very dare you! Estate Agents are professionals and we never lie. Besides the BBC call us experts. What we are seeing now are clearly green shoots. Property is going to sky rocket by the end of the year and all you loser bears are going to be priced out for ever! :P

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1. Rumour that Connells will be sold by its owner the Skipton BS.

2. Man from Connells says "rumours are twaddle".

3. Man from Skipton BS refuses to comment.

Perhaps Connells can be the Cornerstone of this housing market crash. I personally wouldn't miss them and their ludicrous marketing strategies.

Anyway, for those old enough to remember, Abbey National (*snigger*) sold their Cornerstone EA business in 1993 to a couple of spivs who got backing from Provident Life.

Part 1

However, two years later they finally went bust.

Part 2

The two articles are worth reading if only to give some idea of how renewed confidence today can be dashed to pieces a couple of years later.

Haven't had time to read the articles thoroughly but those headlines are priceless.

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Typical bernard Ingham tactics of bluster and denial.

Remember also Bush Senior's "read my lips no new taxes"?

He was absolutely right, there were no new taxes, just higher rates for the current taxes.

Now read this again:

However, on this occasion I want to unequivocally state that the article is twaddle and Connells is most definitely NOT for sale.

Of course that doesn't mean they aren't preparing for being sold, which is what the story was about.

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