Countrywide posts quarterly revenue decline amid challenging market conditions

29th Apr 2015 09:36

Real estate and property group Countrywide reported a decline in first quarter revenue, as challenging market conditions hit its house sales distribution.The London-listed group said total revenue in the first quarter declined 2% year-on-year to £154.2m, as a decline in UK housing market conditions had a negative impact on its estate agency and London & premier home sales businesses.Revenue in the former arm declined 13% year-on-year, while the latter registered a 14% drop from the corresponding period in 2014.However, the loss in revenue was largely offset by strong growth in the residential letting business, where the number of properties under management grew, while the company's financial services and valuation surveying arms performed strongly.The FTSE 250 group said uncertainty surrounding the UK general election is likely to weigh on property transactions, adding it expected a turnaround in the second half of the year, which will be pivotal to determine its annual outcome."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 group chief executive Alison Platt.Analysts at N+1 Singer said the delay in transactions due to the uncertainty surrounding the election was expected, but added the trading statement was "not good" and reiterated its "sell" rating on the stock.Countrywide shares were down 4.10% to 503.50p at 10:09 on Wednesday.