Wednesday, Jul 19, 2006

Couldn't have happened to a nicer company

FT: Rightmove shares plummet on Hip U-turn

Shares in property website Rightmove dived today after hopes of a major earnings boost from the launch of Home Information Packs were dashed. The blow came after the Government said the controversial survey element of the packs would not be included at their launch next year. Rightmove, which has positioned itself to offer services linked to the new packs, said revenues and potential earnings from its HIPs product were now likely to be "significantly lower" than current market expectations. Shares in the company, which rallied earlier this month because of a strong trading update, fell by 19% to 285.5p. One of its major stakeholders, estate agency group Countrywide, saw its shares dip by more than 6%. Rightmove's share price is now back below its flotation price of 335p in March.

Posted by freewheelin franklin @ 11:34 AM (567 views)
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1. Superruss said...

Ha, ha and ha.

This u-turn was in my view both obvious and necessary. HIPS packs are a laughable idea - their fundamental benefits are a bone of contention and their value seems questioned by at least half of the industry.

Anyone who starts building a business on the bases that they will in some way hope to benefit from the UK house market over the next few years needs their head examined.

Sorry, I take that back. I might start an outsourced repo service for the banks. They are going to need all the help they can get!

Wednesday, July 19, 2006 01:03PM Report Comment

2. Rimmer said...

Just a slight U - Turn then, a mate of mine has borrowed 30000 to do a HIP inspectors course bet hes livid, we all knew it was rubbish as well, who as a buyer was ever going to trust a survey from the seller?

Wednesday, July 19, 2006 01:31PM Report Comment

3. Rosy said...

Presumably if the survey was misleading, the buyer could sue? For most purchases you get some sort of satisfaction guarantee these days - it's strange that when you spend half a million pounds on a house no rules apply... (sorry if you didn't see the massive cracks in the walls that I papered over just before you came to view the place...) Obviously buyer beware and all that, but even on ebay you get some sort of come back if the thing is rubbish.

Wednesday, July 19, 2006 02:07PM Report Comment

4. The Bald Man said...

Hips, SIPS, ID cards what is the next U-turn? Do not invest in anything this government says it will do. What about a nice casino?

Wednesday, July 19, 2006 05:04PM Report Comment

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