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TODAY'S OTHER NEWS

Countrywide price slides further on first day of new shares trading

Following the first day of trading its new shares yesterday, Countrywide's share price finished at 12.52, down almost 4%.

The new shares were launched at 8am yesterday after a General Meeting of investors on Tuesday when shareholders backed a management bid for £140 million in additional funding.

The fundraising proposals were backed by 98% of Oaktree Capital Management and 99% of Brandes Investment Partners, the agency's two major investors.

Countrywide now aims to raise £140 million to try and pay off some of its debt, which is believed to be in the region of £200 million.

The agency's share price dipped to an all-time low of 13p earlier this week, valuing the company at just over £70 million.

It was also reported yesterday that Hosking Partners LLP now holds a 5.5% in Countrywide - its previous holding was unknown.

The investment company now holds an interest in 89.9 million of Countrywide's 1.64 billion issued shares.

Since the start of 2018, Countrywide has issued a series of profit warnings and in its interim figures reported during the summer it revealed a pre-tax loss of £205.8m in the first half of the year compared to a profit of £500,000 last year.

Income dropped nine per cent to £303.6m and adjusted earnings plummeted over 50% to £10.7m.

The company is now embarking on its three year 'back to basics' plan.

*Graham Norwood is on annual leave, returning Tuesday September 11. Conor Shilling will be undertaking editorial duties in his absence. Please send any press enquiries to press@estateagenttoday.co.uk.

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    Dinosaur business model destined for the dustbin of history. The property world's equiv. of BHS, Debenhams, House of Fraser, Toys R US, etc.

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