Countrywide’s share price has dived over 50 per cent during the course of the day, following news of LSL pulling out of takeover talks.
The share price dropped by around a third within minutes of the LSL move; during the morning it worsened further and by lunchtime it was down over 51 per cent at 84.10p.
Almost all property sector share prices have dropped significantly today, as a result of another day of Coronavirus panic on stock markets, but those falls have been far less than that of Countrywide.
After LSL pulled the plug on a possible takeover, Countrywide issued a statement saying: “As announced by Countrywide on the 11th March, the Company has been seeing the benefits from its 'Back to basics' turnaround plan, with continuing operations having returned to growth in profitability. The board of Countrywide remains confident in the strength of the underlying business as an independent company.”
And it added: “The company has seen a positive mood swing in public sentiment through the early part of 2020 which we have seen reflected in a strong start in agreed sales which are ahead of the board's expectations through February 2020. Whilst we have seen some softening in recent days as a result of Covid-19, it is too early to assess that impact.”
The company is to issue its 2019 full year figures by the end of this month.
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Countrywide's demise: be certain that is where we are, has come about in a predictable manner, and can be pinned on one factor mismanagement from the top.
For well over 18 months I have been screaming that someone needed to take the helm and steer this huge vessel away from the rocks. Reaction from the c-suite, carry on as though everything is normal.
Well the three year plan for sure is well under way, it is a shame that it was just like its author, misguided, out of step and lacking any merit.
Maybe this week will see some long overdue resignations, then again that would take introspection, and ownership of the abject failure that is now Countrywide, the financially wounded Dinosaur that failed to listen, or adopt the Proptech Revolution.
Great management coupled with technology digitally transforming processes, creating lasting efficiencies, with 10,000 people in the business, Countrywide should have been a model of modern real estate industry, instead it will stand as a lasting blueprint of how not to do agency.
A warning for any other Dinosaur businesses, 'modernise, clients are transacting their lives through a digital prism'.
Brilliant words sir and it seems that it runs through the collapsed veins of the outfit.
I interviewed with countywide not long ago. A managing director Toby Phillips interviewed me. He spent almost the entire interview talking about himself, his £65k jaguar, his never questioned expenses. I couldn't get many words in. He said the British people love the old ways of estate agency and he said online was a fad. I didn't take the job based on what he had to say and clearly how poorly managed Countrywide was/is.
Out with the old and in with the new,Toby turns up for his mark in the morning like most school children then works from home "NOT"
Never worked for or with him but I have pals who have. Their view is that he is long on words but short on action. Your interview experience would tend to confirm that.
Toby Phillips and Simon Old as Directors. Both sacked/paid to leave Cornell’s as failed Area Directors. Now Captaining the Titanic.
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