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Countrywide agrees sale of commercial arm

The estate agency also plans to undertake a share consolidation
November 29, 2019

Countrywide (CWD) has agreed to sell commercial business Lambert Smith Hampton for £38m – or six times adjusted cash profits – to John Bengt Moeller, founder of real estate investment company Great Global Holdings. The estate agency will use the proceeds to cut debt and has also agreed a new credit facility with its lenders.

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Management has also proposed a 50-for-one share consolidation, which it hopes will improve liquidity in the shares by reducing volatility and spread. The shares rose by as much as 16 per cent on the morning of the announcement. 

A reduction in the volume of house sales resulted in a 4 per cent decline in sales and lettings revenue during the first half of the year, while pre-tax losses came in at £40m. Management introduced a number of self-help measures, including cutting costs and attempting to increase sales of ancillary conveyancing and financial services.