Countrywide in £40m fundraiser as going gets tough

The UK’s biggest estate agent, Countrywide, launched a surprise £40 million share placing to cut debts earlier as profits were hit by a sliding property market.

The owner of estate agents including Mann and Bairstow Eves’ fundraiser came as it also cut the final dividend in “difficult” market conditions, according to chief executive Alison Platt.

Annual profits were off 39% to £52.7 million, sending the shares down 11.3p, to 174.9p, or 6%.

Chief financial officer Jim Clarke said the placing would allow Countrywide, which has a debt pile of £240 million, to keep investing in the digital side of the business to cut costs.

He said: “The housing market fell by 4%-5% last year and it will probably do the same again this year, so we won’t see a catalyst for a recovery."

He added: “We thought we should have a little less leverage to allow us to invest against a market that is not going to do us any favours, he added.”

The placing has been backed by shareholders but the firm will give away less of its profits as dividends in future.