Estate agent Countrywide warns on impact of housing market slowdown
Property giant Countrywide this morning said its sales pipeline had remained “resilient” during the lockdown period so far but warned it expects a “material slowdown” in transactions.
The company, which owns the Bairstow Eves and Hamptons International estate agent brands, agreed sales pipeline throughout said the agreed sales pipeline during the coronavirus lockdown stood at £50m and is ahead year-on-year.
However the company did not provide profit guidance for the year, saying it anticipates that “with the continued lockdown there will be a material slowdown in housing transactions”.
The estate agent has closed all of its 731 branches during the lockdown period and placed 78 per cent of its staff on furlough.
In Countrywide’s worst case scenario it said income could plunge 73 per cent in the second quarter of the year.
It said its stress testing showed the business had liquidity of around £20m to £30m to support the business through its “reasonable worst case scenario”.
Countrywide is also considering applying for funding under the Coronavirus Large Business Interruption Loan Scheme.
The company’s chairman and non-executive directors have taken a 33 per cent pay cut, while the executive and leadership team have agreed to a 20 per cent salary reduction. All non-furloughed staff earning above £45,000 have also taken a 20 per cent pay cut.
In a statement this morning the company said: “The board believes these measures are appropriate and proportionate given the current challenges the business is facing, and will enable the group to shoulder this downturn in the near term and to return the Group back to profitable growth.
“The board would like to take this opportunity to thank all our colleagues in Countrywide for their ongoing dedication and commitment to ensuring the continuation of the essential services the group provides to its customers.”