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Written by rosalind renshaw

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.”

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.” 

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.”

Comments

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    perhaps those american auctioneers wil sell it. lol

    • 14 June 2009 08:24 AM
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    +1

    • 12 June 2009 22:43 PM
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    I think we should all back Gordon and buy property to get the market going again.

    • 12 June 2009 22:42 PM
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    If houses were not 3 times their true value, these EAs would not be going down the pan, and the economy would not be crumbling, something that will effect everybody eventually.

    • 12 June 2009 22:07 PM
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    looks like trouble, selling off parts to keep a dead company afloat. Hey havent you heard the market is booming again.

    • 12 June 2009 21:15 PM
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    Are they getting short on instructions? is desperation setting in? it would be good if we all got back to basics, ie estate agents sold houses, banks and building societys lent money.....the two will never live inperfect harmony.

    • 12 June 2009 21:11 PM
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    Any EA comes near my gaff I swear I'll do time.

    • 12 June 2009 21:07 PM
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    Try your luck at being a property trillionaire www.btlpropertydeveloper.co.uk buy buy buy and watch the money pour in. property only ever goes up!!!

    • 12 June 2009 20:55 PM
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    Relax at the www.ho-tel.co.uk Nice Girls For You.

    • 12 June 2009 20:53 PM
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    Another nail in the coffin for EAs. Let's hope they are able to get jobs in the future.

    And they're a bit cunty if you ask me.

    • 12 June 2009 20:45 PM
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    Lets hope they put they dont put the sale in the hands of one of thier panel of "solicitors" it will never go through!!

    • 11 June 2009 10:16 AM
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    In life and business as we all know, "everything and anything" is always up for sale at the right price. We have seen it before and im sure we will see it again, remember Prudential and others. The bigger one is the harder they fall.

    • 10 June 2009 18:53 PM
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    "Twaddle" or up S*** creek without a paddle!!

    • 10 June 2009 18:26 PM
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    no smoke without fire the claudron is bubbling and the witch doctor is formulating......it will be interesting to see what happens

    • 10 June 2009 18:21 PM
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    and every sacked football manager receives the support of theuir chairman, before they get sacked! Skipton are clever, good time to off load a problem child.

    • 10 June 2009 18:14 PM
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    Pure speculation can often turn into reality. Unless the market shows a very big turnaround, I would speculate that cash will be needed by the parent and this could then become a reality.

    • 10 June 2009 14:44 PM
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    you have to be impressed by their market share in most areas they work in. They use the same advert year in year out and as far as i see dont really market themselves. Anyone know the secret?

    cant be down to a red for sale board, surely.

    • 10 June 2009 12:02 PM
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    Whilst I have no personal time for the senior hierarchy at Connells having been a Director colleague for many years - they are a first class organisation with real skill and talent. Their bottom line performance has always led the way and most other players would kill for their track record.

    If Skipton do sell it will be at a huge increase in value over what they paid and they have had many years of bolstering their Group bottom line too.

    • 10 June 2009 11:35 AM
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    the sooner these ignorant mass turnover corporate groups are dissolved the better-i am sick and tired of competing with inexperienced morons who havent got a clue about real agency work and what it means...ask me why!

    • 10 June 2009 10:19 AM
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    "In February, Skipton released results saying that Connells made £10.4m profits in the last financial year"

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

    "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.”

    So..isn't that what Skipton said in the first place...
    "released results saying that Connells made £10.4m profits in the last financial year"

    Sounds to me like Shippey is getting his facts arse about face quite a bit. So perhaps he could be getting "I want to unequivocally state that the article is twaddle and Connells is most definitely NOT for sale" mixed up with "I want to unequivocally state that the article is twaddle and Connells is most definitely for sale".

    An easy mistake to make

    :-)

    • 10 June 2009 09:52 AM
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    I'll offer a pound for their business - but on second thoughts no - I already gave money to 'children in need' this year ha ha!!

    • 10 June 2009 09:43 AM
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    Methinks Mr Shipperley doth protest too much! Isn't it a giggle when the corporate bods realise they don't control their destiny.

    • 10 June 2009 09:36 AM
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