View more on these topics

Countrywide raises £140m in rescue plan

Countrywide received an injection of £140m today after shareholders approved the purchase of new shares by 98 per cent at the company’s annual general meeting.

City firms Oaktree Capital Management and Brandes Investment Partners, already shareholders in Countrywide, took part in the capital refinancing resolution.

Of the total amount raised by the share issue, £115m will be used to pay down debt, £14m for “general corporate purposes” and to support working capital, and £11m on fees and expenses.

Previous to today’s AGM, plans to vote on new remuneration plans to reward directors depending on share prices up to the end of 2021 were withdrawn from the agenda.

Earlier this month, Mortgage Strategy reported on Countrywide’s share price plunging 91 per cent in one year amid losses of £206m and poor response to a discounted share offer.

Hargreaves Lansdown senior analyst Laith Khalaf says: “Countrywide is back from the brink thanks to a shareholder bailout, though the estate agent is still fighting an uphill battle on a rather slippery slope.

“The injection of £129m of cash will keep the wheels turning for now, but that money is being used to pay down debt rather than to fund growth. In other words, this cash is a lifeline rather than a springboard.

“Some of the wounds Countrywide is nursing were self-inflicted, though political and fiscal decisions have played a part too. In particular, stamp duty reforms and Brexit concerns prompted a 22 per cent decline in London housing transactions last year, which compounded the operational mistakes made by Countrywide itself.

“Countrywide now has to retrace some of its steps and rebuild its business. Shareholders will be hoping the housing market doesn’t throw the estate agent a curveball while it’s climbing back off its knees.”

Recommended

e.surv

Who’s tipped to snap up Countrywide after shares plunge?

Brokers and market analysts have shared their predictions of which firms might look to takeover Countrywide following the property group’s share price slump. Mortgage Strategy reported yesterday that the estate agency, surveying and broker firm’s stocks had fallen by 91 per cent over the past year from 158.50p to 14.26p. Industry pundits have named LSL Group, […]

1

Countrywide’s share price plunges 91 per cent in a year

Countrywide’s share price has suffered further falls over the past week, taking the total decline to 91 per cent year-on-year. The property giant has seen shares plunge from 158.50 a year ago to just 14.26p today. In the last three months alone the group has seen around £200 million wiped off its stock market value, according […]

Nottingham City Transport

City house prices grow 4.2% annually: Hometrack

The latest Hometrack Cities House Price Index reports that house prices in UK cities grew 2.9 per cent in the three months leading to July, or 4.2 per cent year-on-year, giving an average house price of £252,400. Flat London prices (-0.1 per cent growth year-on-year) and a 4.0 per cent fall in Aberdeen were countered […]

House-For-Rent-Home-700.jpg

Aldermore launches new buy-to-let product for individual landlords

 Aldermore has launched a new buy-to-let remortgage product for individual landlords.  This product is only available to landlords with multiple properties, provided they are all single residential units. This is a five-year fixed rate deal, with rates starting from 3.48 per cent for loans up to  75 per cent LTV. This rate increases to 3.78 […]

Embrace simplicity!

By Fiona Holmes, proposition communications manager When I first took out critical illness cover, I was overwhelmed. It wasn’t just the form filling, it was finding out about the sheer number of illnesses I was covered for. Did it give me peace of mind that I was covered for neuromyelitis optica or systematic lupus erythematosus? […]

Newsletter

News and expert analysis straight to your inbox

Sign up