Investor relations

Half year 2018 results

Countrywide announces its results for the six months ended 30 June 2018 and an update on its Strategy and Turnaround plan.

Results for the six months ended 30 June 2018

  • Group income declined by 9% to £303.6 million (2017: £332.7 million*). As previously reported, this was principally driven by the opening pipeline deficit in Sales.
  • Adjusted EBITDA of £10.7 million (H1 2017: £27.8 million*) slightly better than recent guidance.
  • Loss after tax of £205.8 million (2017: £0.5 million loss*) reflecting £226.8 million of exceptional costs of principally non-cash exceptional charges for goodwill, intangible and tangible asset impairments (H1 2017: £2.7 million).
  • Net debt at 30 June 2018 was £211.7 million (31 December 2017: £196.4 million*); Net debt/Adjusted EBITDA on a rolling twelve-month basis was 4.7x (FY 2017: 3.1x*).
  • Operational progress: The Group has made significant progress in building back industry expertise and staffing levels in its Sales and Lettings and Financial Services businesses. The register of properties is up 3% year on year at 30 June 2018 and the pipeline has improved by £12.7 million since 31 December 2017 compared with £11.5 million in the same period last year. The Group has also completed the reduction of central functions headcount by a third, which has funded the build back of staff in Sales and Lettings.

* Restated from prior year following the adoption of IFRS 15 and the correction of a prior year error.

Management, strategy and turnaround plan

Today, the Group is separately publishing an update on its Strategy and Turnaround plan which includes the announcement of the launch of a placing and open offer to raise gross proceeds of £140 million (the Capital Refinancing Plan) which is fully underwritten. The Capital Refinancing Plan also includes an amended four year Revolving Credit Facility (the Amended Credit Facility) maturing September 2022 which provides the Group with the financial flexibility to execute its strategy and turnaround plan. Paul Creffield today is appointed to the Board as Group Managing Director, and Paul Chapman becomes the Chief Operating Officer, providing the management expertise we need to execute the turnaround.

Outlook

The Group has made significant progress in building back industry expertise and staffing levels in Sales and Lettings and in building back the register of properties and pipeline of agreed sales. The Group expects to make continued operational progress in the second half of the year, which, combined with the traditionally stronger second half in our B2B and Financial Services operating segments, means the Group expects the full year to be in line with the Board’s expectations.