CWD.L Share News (CWD)

(Sharecast News) - Countrywide said earnings at continuing operations for the first four months of 2020 were well ahead of the year before as the estate agent group reported an increase in underlying profit for 2019.

Operating profit before exceptional items for the year to the end of December rose to £35.8m from £3.6m as revenue from continuing operations fell 3% to £498.1m. Including exceptional items the annual loss narrowed to £37.5m from £224.4m.

Countrywide said it had a positive start to the year with sales increasing into March. For the four months to the end of April adjusted earnings before interest, tax, depreciation and amortisation from existing operations were "consistently ahead" of the same period a year earlier. Performance was supported by strong trading in the first three months and a £50m pipeline going into April.

The company, whose brands include Hamptons and Bairstow Eves, nearly collapsed in 2018 after issuing four profit warnings in eight months in a property market depressed by Brexit. It has since closed hundreds of branches and held merger talks with rival LSL.

The government reopened the housing market on 13 May. Countrywide said it had started a phased reopening of its businesses, including branches and valuation visits. The company has expanded its online viewing services and is offering mortgage advice on the phone for customers who do not want to visit properties or branches.

"The board's priority remains the safety of our colleagues and customers, to provide essential services to our customers, to preserve and protect the future of the business for our people and to conserve cash and to manage the group through the coronavirus pandemic," Countrywide said.

"Whilst the housing market in England was re-opened on 13 May, it is too early to assess the impact on housing transactions, and the group is therefore unable to provide guidance on future profitability."

Countrywide shares rose 3.3% to 64.02p at 10:39 BST.