LONDON (Alliance News) - Countrywide PLC on Wednesday said its revenue in the first quarter was slightly lower as tough market conditions hit its house sales business and a better performance in its lettings arm offset the weakness.
The FTSE 250-listed estate agency and property services company said its total revenue in the first quarter to the end of March was GBP154.2 million, down 2% year-on-year as deteriorating conditions in the housing market in the UK hit its estate agency and London & Premier home sales divisions. Revenue in its estate agency business dropped 13% year-on-year, while London & Premier revenue fell 14%.
That was mostly offset by growth in its residential lettings business, where its properties under management grew, while it also saw good performances in its financial services arm and in its valuation and surveying business.
Countrywide said 2015 has started broadly in line with its expectations, with the first half set to see property transactions lower year-on-year due to uncertainty surrounding the General Election in the UK. It expects a recovery in the second half of the year and said the strength of the turnaround will be crucial in determining its outcome for the full year.
"Notwithstanding the interim market challenges, we continue to invest in our broad based business, diversifying revenue streams into more property activities that are independent of the housing transaction cycle to deliver sustainable growth in coming years," said Alison Platt, Countrywide's chief executive.
Countrywide shares were down 2.1% to 514.00 pence on Wednesday after the open, one of the worst performers in the FTSE 250.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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