Countrywide price slides further on first day of new shares trading

Following the first day of trading its new shares yesterday, Countrywide's share price finished at 12.52, down almost 4%.

The new shares were launched at 8am yesterday after a General Meeting of investors on Tuesday when shareholders backed a management bid for £140 million in additional funding.

The fundraising proposals were backed by 98% of Oaktree Capital Management and 99% of Brandes Investment Partners, the agency's two major investors.

Countrywide now aims to raise £140 million to try and pay off some of its debt, which is believed to be in the region of £200 million.

The agency's share price dipped to an all-time low of 13p earlier this week, valuing the company at just over £70 million.

It was also reported yesterday that Hosking Partners LLP now holds a 5.5% in Countrywide - its previous holding was unknown.

The investment company now holds an interest in 89.9 million of Countrywide's 1.64 billion issued shares.

Since the start of 2018, Countrywide has issued a series of profit warnings and in its interim figures reported during the summer it revealed a pre-tax loss of £205.8m in the first half of the year compared to a profit of £500,000 last year.

Income dropped nine per cent to £303.6m and adjusted earnings plummeted over 50% to £10.7m.

The company is now embarking on its three year 'back to basics' plan.

*Graham Norwood is on annual leave, returning Tuesday September 11. Conor Shilling will be undertaking editorial duties in his absence. Please send any press enquiries to press@estateagenttoday.co.uk.