Estate agent Countrywide (LON:CWD) saw shares rise on Friday, despite both a fall in income in the fourth quarter and a drop in London house sales.
Total group income for the year was circa £737 million, up from £734 in 2015. However, income fell significantly in the fourth quarter of the year, dropping to £179 million from£196 million.
The group’s results were hindered by a 6 percent drop in the volume of house sales in London in the final quarter, but Countrywide reiterated that EBITDA for 2016 is expected to remain with the current range of market expectations.
Commenting on the estate agent’s performance, Alison Platt, CEO said:
“It is pleasing to report modest full year revenue growth against the backdrop of a challenging residential sales market. Our Retail and London divisions were impacted by the lower market volumes which were partially offset by a strong performance from our Lettings business. It is encouraging to note that both Financial Services and Surveying reported profit growth notwithstanding the external environment.
“We continue to focus on delivering cost and productivity efficiencies across our business which will mitigate the impact of a 2017 sales market which is expected to show a reduction on 2016 volumes. The roll-out of our digital proposition remains on track and we continue to see performance in line with our expectations.
Platt added: “As set out on 15 December 2016, we are currently underway with a strategic review of our Lambert Smith Hampton business and further announcements will be made as appropriate.”
Countrywide has recently launched a controversial new initiative, a so-called multi-channel pilot’, which sees its agencies offer a wider range of services to vendors, including hybrid-style online advertising as well as full-service traditional agency. The agency now has a bigger emphasis on digital sales as well as a partnerships with online service providers such as Fixflo.
Countrywide shares are currently trading up 3.96 percent at 177.99 (0928GMT).