Countrywide’s share price has taken a massive hit this morning - down well over 20 per cent - following a surprise trading statement in which it revealed it was cutting its expected income forecast this year.
The share price opened at 78.5p at 8am but within 10 minutes dropped to just 59.85p - a drop of 24 per cent. By mid-morning it went further down to 59.38p as investors appeared unconvinced about the company's Back To Basics recovery plan, outlined some months ago and still being implemented. Then by late afternoon, the drop approached an extraordinary 30 per cent.
In January this year Countrywide's share price dropped around 19 per cent following an unscheduled profits warning from the then-chief executive Alison Platt, who quit the company a few days later.
Regular readers of EAT’s coverage on Countrywide will know that at its peak four years ago the agency’s share price stood at 686.5p
Countrywide’s statement this morning revealed that adjusted EBITDA - that is, Earnings Before Interest, Tax, Depreciation and Amortization, which is a key measure for investors of a company's performance - would be about £20m lower in the first half of this year than in the same period of 2017.
“We do not expect this shortfall to be recovered in the second half” says the statement.
You can read the full statement by Countrywide here.