News
Countrywide reports earnings up 70%; £210bn of UK mortgage lending predicted for 2014
Countrywide Group reported its strongest figures for seven years today and predicts lending will hit between, £200‐£210bn in 2014 with the majority from the broker channel, in its half year results.
The lettings, estate agency, surveying, conveyancing and financial services company group continues to invest in the training and growth of adviser numbers.
Its consultant headcount grew from 575 at the end of June 2013 to 669 today, but that figure is expected to remain unchanged for the rest of the year.
The group also predicts the next rate rise will happen before the end of the year.
The property group’s results confirmed an adjusted EBITDA* of £45m, an increase of 70% from £26.4m last year.
The financial services division delivered a strong half year performance reflecting ‘improved market conditions’ with income up 13%.
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Countrywide said the first half of 2014 were encouraging with volume transactions, fee income and insurance commissions all rising.
“Mortgage exchange volumes were 25% higher than last year and, significantly,
the value of mortgage advances arranged within the division totalled £4.8bn, a 37% increase from 2013.
“As expected, growth slowed in Q2 as the division and mortgage lenders adjusted to the impact of April’s Mortgage Market Review but momentum remains encouraging. We expect slightly reduced activity levels in Q3 but in a rising interest rate environment remortgage volumes should begin to rise in Q4,” it said.
Chief executive Grenville Turner, (pictured) who steps down to non-executive chairman on 1 September to be replaced by Alison Platt, said lettings and commercial underpinned these results.
The group also invested £36m in 23 businesses, primarily in the lettings sector.
In February, the group also announced a planned residential property investment vehicle and is in advanced discussions with well-known institutional investors with plans to launch in H2 2014.
Turner said: “Our very encouraging first half performance provides a robust foundation on which to deliver our 2014 plan. The housing market continues to grow at a measured pace, with recovery in both transaction volumes and house prices underpinning the strong momentum we are experiencing across all our divisions. We are confident that Countrywide will deliver its best ever group performance this year, with strong cash generation enabling us to explore strategic acquisitions and investment in our current business whilst maintaining modest levels of leverage in the business.”
* EBITDA Earnings before interest, tax, depreciation, amortisation, exceptional items, management fee, share‐based payments and share of profits from joint venture.