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Hunters Property shares slide amid coronavirus slowdown
30th Mar 2020 16:01
(Sharecast News) - Franchised residential sales and lettings agency Hunters Property updated the market on the impact of the Covid-19 coronavirus pandemic on current trading on Monday, and on the publication of its results for the year ended 31 December.
The AIM-traded firm said that in response to recent guidance from the Financial Conduct Authority and the London Stock Exchange, the publication of its preliminary results - previously expected on or around 2 April - would be delayed.
It confirmed that the annual general meeting would also be delayed.
In a trading statement on 30 January, the group reported a "strong finish" to 2019.
That strong momentum carried through to 2020, the board said, with instructions and gross sales across its network up 8% and 17% respectively in the period to 29 February when compared to the first two months of 2019.
"Since then, however, the terrible spread of the Covid-19 virus and the necessary steps taken by the government in response has had a material adverse impact on the economy, leading to a very significant slowing of activity in the housing market," the board said in its statement.
"We have taken and will continue to take appropriate measures to mitigate the impact on our colleagues and to ensure we are able to support our network and customers."
Despite a strong start to the year, the board said the pandemic and related slowdown would lead to a "material adverse impact" on its performance in 2020.
It said it was too early to quantify exactly what the impact would be, but in the short term it expected that revenues from residential sales would be most affected, which represented about 25% of revenues in 2019.
"Franchise and lettings revenues we would expect to be more robust, which together represented 66% total revenues in 2019," the board said.
"We will provide clearer guidance with the eventual publication of our 2019 results."
At 1559 BST, shares in Hunters Property were down 38.46% at 20p.
The AIM-traded firm said that in response to recent guidance from the Financial Conduct Authority and the London Stock Exchange, the publication of its preliminary results - previously expected on or around 2 April - would be delayed.
It confirmed that the annual general meeting would also be delayed.
In a trading statement on 30 January, the group reported a "strong finish" to 2019.
That strong momentum carried through to 2020, the board said, with instructions and gross sales across its network up 8% and 17% respectively in the period to 29 February when compared to the first two months of 2019.
"Since then, however, the terrible spread of the Covid-19 virus and the necessary steps taken by the government in response has had a material adverse impact on the economy, leading to a very significant slowing of activity in the housing market," the board said in its statement.
"We have taken and will continue to take appropriate measures to mitigate the impact on our colleagues and to ensure we are able to support our network and customers."
Despite a strong start to the year, the board said the pandemic and related slowdown would lead to a "material adverse impact" on its performance in 2020.
It said it was too early to quantify exactly what the impact would be, but in the short term it expected that revenues from residential sales would be most affected, which represented about 25% of revenues in 2019.
"Franchise and lettings revenues we would expect to be more robust, which together represented 66% total revenues in 2019," the board said.
"We will provide clearer guidance with the eventual publication of our 2019 results."
At 1559 BST, shares in Hunters Property were down 38.46% at 20p.