Countrywide Share Plunge Hits UK Funds

Britain's biggest estate agent, whose shares fell sharply on Thursday following a profit warning, is held by a number of UK equity funds

James Gard 19 January, 2018 | 2:51AM
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Houses for sale in the UK

Shares in Britain’s biggest estate agent, Countrywide (CWD), plunged 16% on Thursday as it issued a profit warning for 2017.

Pre-tax profit for 2017 residential estate agency and property services company is expected at £65 million, down from £83.5 million in 2016. The company, which owns estate agency brands Hamptons and Bairstow Eves, lost 32% of its value in 2017.

The expected drop is down to a "disappointing fourth quarter performance" in sales & letting, where full-year income is expected to be £360 million, down 14% on 2016. Income in London and the UK is expected to be down 10% and 17% year-on-year, respectively.

Growth in the UK housing market has been slowing down in recent months, according to most surveys, and prices have been falling in London.

The largest shareholders are listed as Oaktree Capital with 33%, Brandes Investment Partners with 19%, Apollo Investors has 10%, Harris Associates has 7.6%. Investec Asset Management owns 6.2% of the estate agent, while Jupiter Asset Management owns 5.8% in aggregate. 

Countrywide makes up more than 1% of Neutral-rated Jupiter UK Growth and the two-star rated investment trust version (JUKG), and Jupiter Absolute Return Fund, which has a Morningstar Analyst Rating of Bronze. The company is also held by Investec UK Total Return Fund, making up nearly 1% of the fund’s portfolio.

Fidelity UK Smaller Companies also holds Countrywide, although the share only makes up 0.15% of the fund’s portfolio. The fund is rated Bronze by Morningstar analysts and has a three-star performance rating.

Franklin Templeton owns 5.8% of the company, and JO Hambro Capital Management owns 5.1%. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Fidelity UK Smaller Companies A-Acc418.21 GBP-0.54Rating
Jupiter Flexible Macro Fund L Acc  
Jupiter UK Growth L Inc275.35 GBP0.73Rating

About Author

James Gard

James Gard  is senior editor for Morningstar.co.uk

 

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