Countrywide has reported a 52 per cent increase in operating profit, up to £85m last year from £56m in 2013, today (26 February).
The integrated property services group’s results for 2014, published today (26 February), also showed a 20 per cent increase in total income, up to £702m from £585m the year before.
Group adjusted earnings before interest, taxes, depreciation and amortisation margin reached its highest ever level of 17 per cent - increasing from 15 per cent in 2013.
The report stated that continued diversification of the group meant that about 40 per cent of profits were now generated from business streams not directly related to the housing transactions cycle.
It also explained that appropriate capital structure was now in place to maximise future growth opportunities, with the board announcing an extension to the existing share repurchase programme, backing plans to spend up to an additional £20m subject to market conditions.
Alison Platt, the group’s chief executive, added that Countrywide is already highly integrated, but there is a clear opportunity to expand further by leveraging the expertise and customer base of the network of regional offices to offer customers multiple services.
She said: “We will also continue to grow our lettings business, both through property management and by increasing our investment in the private rented sector.
“I believe that these activities, together with the escalation of our commercial real estate activities, where there are also many opportunities to grow recurring revenue streams, position us well to achieve our aim of building a broad-based business that can perform well and deliver robust shareholder returns throughout the market cycle.”
Grenville Turner, chairman at Countrywide, anticipated some sluggishness in market trends over the first half of 2015 in the lead up to the election.
He said: “However, the resilience we derive from our broad-based business, our low leverage and our proven ability to deliver growth in a challenging market positions us well to take advantage of sustainable growth in our lettings and commercial businesses and capitalise quickly on the upturn as the residential sales market recovers in the medium to long term.”
peter.walker@ft.com
