Countrywide may have enjoyed the overwhelming support of its major institutional shareholders for its controversial rescue plan, but the wider financial world appears distinctly unimpressed.
Countrywide’s share price yesterday closed just over 10 per cent down at just under 13.3p - valuing the company overall at just £78m.
The announcement that only around two per cent of investors rejected the £140m cash call came at lunchtime yesterday, following a General Meeting of investors - and prompted a seven per cent drop in the share price.
Trading in the new shares begins at 8am tomorrow and funds raised will be used to pay off some of the company’s £200m debt pile.
As has been extensively reported on Estate Agent Today, Countrywide has issued a series of profit warnings since the start of 2018 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 per cent to £10.7m.