Countrywide warns on profits as losses widen amid ongoing slowdown in housing market
Source - SMW
Countrywide reported Thursday wider annual losses and warned on profits as the ongoing slowdown in home buying activity would continue into the first half of the year.
For the year ended 31 December, pre-tax losses widened to £258.1m from £237.2m a year earlier and income declined 7% to £627.1.
The pipeline of agreed sales awaiting exchange of contracts in UK Sales and Lettings was up 5% having begun the year with a 21% opening pipeline deficit, the company said.
'We encountered market weakness in Q4 due to the further uncertainties surrounding Brexit which is affecting both our sector and consumer confidence as a whole. These headwinds have continued into 2019,' said Executive Chairman, Peter Long.
'As a result, we are experiencing further slow-down in residential and commercial property transactions particularly in London and the South, which will affect our H1 EBITDA by some £3 - £5 million.'
'Whilst we expect full year EBITDA to be broadly in-line with 2018 (after mitigating the impact of the ban on tenant fees of £9 million), it is contingent on recovering the H1 shortfall in our traditionally stronger H2.' At 9:13am: (LON:CWD) Countrywide Plc share price was -0.97p at 9.53p