Countrywide enjoys strong quarter, sees full-year at top end of targets

6th May 2014 07:05

- First quarter income surges 35 per cent- Recovery in residential property market continues- Confident in delivering full-year at top end of expectationsEstate agent chain Countrywide said momentum in the later stages of 2013 continued into the first quarter of this year as the recovery in the residential property market continues.Countrywide, which runs brands such as Bairstow Eves, Bridgfords and Hamptons, said total income jumped 35% to £157.1m in the three-month period to March 31st 2014 from the same period a year earlier. The pipeline going into the second quarter remained positive and the group is confident of delivering a financial performance for the year towards the top end of its expectations."As expected, 2013 saw the first meaningful increase in market transactions since 2007 with volumes up 18%, although this has to be put in perspective - 2013 volumes were 62% of the level recorded in 2006, it said in a trading update."Data available so far in 2014 reflects a continuation of the trends evident in 2013 with Bank of England mortgage approvals for Q1 showing volumes up 33% on the same period in 2013 and Land Registry volumes for January up 43%."Countrywide, which completed acquisitions such as Tucker Gardner and Preston Bennett in 2014, said underlying volumes within its core divisions continue to reflect encouraging growth across the group.Chief Executive Grenville Turner said: "Our underlying level of cash generation remains positive and enables us to continue to invest in accretive bolt-on acquisitions while also putting us in a position to deliver significant cash returns to our shareholders in due course."Turner added: "2013 was a momentous year for the business with a return to the public market and the benefits of the long awaited recovery in the residential property market becoming evident in the latter half of the year. "2014 has begun strongly and as a result of our national coverage, we expect to deliver very significant growth in 2014. Our underlying level of cash generation remains positive and enables us to continue to invest in accretive bolt-on acquisitions while also putting us in a position to deliver significant cash returns to our shareholders in due course."CJ