Jump to content
House Price Crash Forum
Sign in to follow this  
RRP

Countrywide's Profits Collapse

Recommended Posts

From our news blog.

Countrywide's profits collapse

This is Money

11 August 2005

COUNTRYWIDE today unveiled an 89% collapse in profits as its core estate agency division suffered a loss for the first time in a decade.

Pre-tax profits in the six months to 30 June fell to £3.5m from £30.7m a year earlier. Chairman Christopher Sporborg said the housing market appeared to have stabilised but confidence could easily be knocked off course by external events.

The company's shares were 1¾p cheaper at at 336¼p in late afternoon London trade.

Countrywide had warned investors in April that results would be materially below last year's after very weak trading conditions. Comparison to 2004 was also difficult because the latest six months included trading from businesses it bought from Bradford & Bingley in October.  ( Yesh, and we all had our fingers cut off so we could not use a calculator, yesh indeedy.)

Suffering from a downturn in the British housing market, Countrywide said the group could operate profitably in the slower market. It said UK completed house sales were nearly 33% down in the six months to June, according to figures from the land registry office. 'This accords with our experience,' Chairman Christopher Sporborg said in a statement.

'Public confidence in the housing markets, whilst improved from the nadir of last autumn, could easily be knocked off course by external events, and we remain careful to keep our costs at a level appropriate to the market,' he said.

'In the absence of any deterioration in the market, our estate agency and financial services businesses should return to profitability in the second half.'

The number of house sales in Countrywide's pipeline was nearly 7,500 higher than at the start of the year, he said.

Any advance on the external factors appreciated.

Is Camilla getting married again ?

Low clouds.

The demise of roof tile manufacturing in Kirkcaldy.

Seagulls.

Edited by RRP

Share this post


Link to post
Share on other sites
<< Back to index

Big fall in house prices

House prices in Barnet have taken the biggest fall in London this year, according to figures published by the Land Registry this week.

Barnet found itself alongside Westminster, Redbridge and Harrow as the only boroughs in the capital to see a two per cent fall in the cost of homes.

The average house price in the borough tumbled from £330,000 to £323,000 from the second quarter of 2004 to the same period in 2005, with detached owners suffering the biggest losses. Semi-detached houses have risen in price, while terraced house prices have remained static.

The volume of sales has also fallen by a quarter, with 1,475 homes sold between April and June 2004, and 1,120 between this April and June.

Marcus Brilliant, of Jeremy Leaf Estate Agents, High Road, East Finchley, says that these changes are due to a lack of confidence in the market. He attributes the drop in prices to the recent terrorist attacks and potential buyers going away in the summer.

Mr Brilliant maintains that while the market is slow, this should not mean that houses cannot be sold.

Wow !

Share this post


Link to post
Share on other sites
Marcus Brilliant, of Jeremy Leaf Estate Agents, High Road, East Finchley, says that these changes are due to a lack of confidence in the market. He attributes the drop in prices to the recent terrorist attacks and potential buyers going away in the summer.

How do these knobs keep a straight face. I am sure the terrorist outrage of 7/7 had a terrible effect on the April to June figures.

And when did people start going away in the summer? Is that a new thing?

Share this post


Link to post
Share on other sites

I think the "external events" was a subtle reference to potential terror threats which are bound to provide a convenient cover story for poor results. I don't think they'll want to quite spell it out like that though.

Share this post


Link to post
Share on other sites
From our news blog. 

Any advance on the external  factors appreciated. 

Is Camilla getting married again ?

Low  clouds.

The demise of roof tile manufacturing in Kirkcaldy.

Seagulls.

Nah, TTRTR is going to bail them out with all that property he's currently buying. :D

Nomadd

Share this post


Link to post
Share on other sites
Marcus Brilliant!

With a name like that he had to either become an EA or an F1 racing driver.

Wonder if he would oblige HPC co.uk with an interview ? Could we wangle seagulls in it ?

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
And when did people start going away in the summer? Is that a new thing?

I think so. Also new is good/bad weather in the summer/autumn/winter/spring (delete as applicable).

The best house buying conditions are apparently:

Nothing happening in the news anywhere.

Nobody going anywhere on holiday.

Nobody famous getting married/dying

No weather of any kind

Nothing good on TV

Once these conditions return, we're set for a buying frenzy!

Share this post


Link to post
Share on other sites
Guest boredwaiting

I have to admit but i was beginning to wonder if we lost ourselves in our own bubble and that house prices were not going to crash - I think that this is the best news possible (front page material?)

Losing 89% of your profit has to hurt - at what point do the branches close, and what percentage is it of their overall turnover.

Why is consumer confidence higher now than last autumn? I would have thought with month upon month of house price drops and now the largest estate agent announcing that their profits are seriously down would reduce the market.

However what am i missing? there shares only dropped just over 1p? I would have though people would offload their shares.... Anyone know what i am not seeing?

Edited by boredwaiting

Share this post


Link to post
Share on other sites
Guest muttley
However what am i missing? there shares only dropped just over 1p? I would have though people would offload their shares.... Anyone know what i am not seeing?

The share price of Estate Agents always go up! Why don't you just admit that you missed the boat and buy some now,while they are still cheap?

Share this post


Link to post
Share on other sites

Losing 89% of your profit has to hurt - at what point do the branches close, and what percentage is it of their overall turnover.

and we remain careful to keep our costs at a level appropriate to the market,' he said.
It has to happen; they will start lay offs.

Why is consumer confidence higher now than last autumn? I would have thought with month upon month of house price drops and now the largest estate agent announcing that their profits are seriously down would reduce the market.

I am as puzzled as you are on this. I have my own theory which runs along the lines that a sizeable chunk of our population believe that the governmentt will sort it out - they have faith !

However what am i missing? there shares only dropped just over 1p? I would have though people would offload their shares.... Anyone know what I am not seeing?

Share this post


Link to post
Share on other sites

I agree, it's completely strange that their share prices hardly went down. Could it just be a confidence trick - you know 'the power of positive brainwashing' and all that?

V. confused :huh:

Share this post


Link to post
Share on other sites

My friend's sister-in-law works in an EA in Glasgow. They are "not selling anything" and "commission makes up a big part of pay so they're short of money".

I was interested in these comments as they seem to suggest that Glasgow/Scotland is not really that far behind London/SE at all.

This really is a UK-wide crash about to unfold, possibly in a quite coordinated way too.

On another note, I keep getting the scene from Titanic in my mind with the string quartet (or whatever) still playing as people are jumping on the lifeboats. Those getting on the boats are us lot (of course) and those in denial are blissfully unaware of their impending doom, playing music, or getting their glasses filled in the ballroom.

Good film. Wish I'd seen it at the time on a screen bigger than 28".

Share this post


Link to post
Share on other sites
My friend's sister-in-law works in an EA in Glasgow.  They are "not selling anything" and "commission makes up a big part of pay so they're short of money".

I was interested in these comments as they seem to suggest that Glasgow/Scotland is not really that far behind London/SE at all.

This really is a UK-wide crash about to unfold, possibly in a quite coordinated way too.

On another note, I keep getting the scene from Titanic in my mind with the string quartet (or whatever) still playing as people are jumping on the lifeboats.  Those getting on the boats are us lot (of course) and those in denial are blissfully unaware of their impending doom, playing music, or getting their glasses filled in the ballroom.

Good film.  Wish I'd seen it at the time on a screen bigger than 28".

I know what you mean, but I see the Ea's dressing up in womens clothing to try and blag a place in the lifeboats.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
I know what you mean, but I see the Ea's dressing up in womens clothing to try and blag a place in the lifeboats.

Shortly before that, one of them was on lookout and failed to spot the iceberg!

Share this post


Link to post
Share on other sites

I think the reason their shares haven’t dropped is because of some blatant ******** by the chairman, who claims “This year, the market started appallingly and has been gently picking up.” Maybe Countrywide have got some sort of exclusive contract with the banks/building societies to offload the growing number of repossessions, although by hailing a “turning point” that could be an admission that things are going to get a lot worse

Share this post


Link to post
Share on other sites
How do these knobs keep a straight face. I am sure the terrorist outrage of 7/7 had a terrible effect on the April to June figures.

And when did people start going away in the summer? Is that a new thing?

Marcus Brilliant also said proudly "There are more properties on our books then ever before" as if massive supply and minimal demand at the current prices was somehow good for his business. Then again, if EAs had half a brain, they would probably be doing something different...

S.

Share this post


Link to post
Share on other sites
Marcus Brilliant also said proudly "There are more properties on our books then ever before" as if massive supply and minimal demand at the current prices was somehow good for his business.

The guy is simply a salesman.

He will present any "feature" as a "benefit", if he can.

Standard sales training.

He would sell a square wheeled car on the benefit of low petrol consumption.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.