Countrywide reports 37% drop in 2015 profits

(ShareCast News) - Countrywide, the UK's largest estate agency group, reported a 37% drop in 2015 profits blaming a "significantly" tougher year for the market.The group's operating profit fell to £53.8m in the 12 months to 31 December 2015 from £84.9m a year earlier as the levels of home buying remained low across the country.Earnings before interest, tax, depreciation and amortisation fell 7% to £113m."A tougher sales market coupled with our significant change agenda challenged us in maintaining our share of sales outside of London," said chief executive Alison Platt.Pre-tax profits plunged 40% to £46.7m as the group handled 8% fewer sales transactions during the year. The company also had to contend with competition from digital rivals including Purplebricks, eMoov and HouseSimple. As a result Countrywide's average sales fee fell 3%.The number of house sales exchanged fell 8% to 67,402. Yet total income rose 4% to £733.7m.The company said a strengthening economy, low interest rates and new government schemes continued to support demand in the core London market in 2015. However, the supply in the housing sector was restricted with a 6% fall in the number of homes coming onto the market.Chairman Genville Turner also said that 2015 was an "uncertain year" which hurt confidence in the housing sector."The May general election was the most uncertain election in a generation and the anticipated post-election boost never materialised," Turner said.The dividend will be held at 10p a share, without paying a special dividend as was in 2014.The financial outlook for 2016 was left unchanged. CEO Platt said the group continues to be prudent in its assumptions for growth in the residential housing market, noting the potential impact of an extra 3% stamp duty for buy-to-let and second home owners from April."Our focus will be driving our own growth through regaining share and attracting new customers through better propositions," Platt said.