Connells reaps rewards of Countrywide buy

Profit at Connells Group has risen to £80.2m over the past six months as the Countrywide owner basks in the hot housing market. Connells bought the estate agent in March, and said that the deal had helped the group boost its profit from £17.2m in the same period for 2020. Underlying EBITDA for the half-year also rose to £112.6m, up from £49.2m for H1 2020. The £80.2m figure also includes £29.3m of gains from the sale of the group’s shareholdings in TM Group and Fixflo for more than £66m. The half-year results also include charges relating to amortisation of Countrywide’s £38.3m of intangible assets, including its sales pipeline, together with acquisition costs of £2.1m. Connells said that exchanges were 34% higher over the first half of 2021 compared with the first six months of 2019, a more meaningful comparative period due to the fact the housing market was effectively closed for almost two months in 2020. It added that confidence in the housing market was strong, with buyer registrations up 49% on H1 2019. However, the flip side of that is that stock remains low, with the number of properties available for sale 14% lower than before the pandemic. Chief executive David Livesey said Connells had “increased the scale of the group and our capabilities significantly with the acquisition of Countrywide”. He added that Countrywide’s branch network was “a key asset” and said that Connells would continue to “maintain and enhance its current branding and service offering”. He also said that the group remains financially strong and continues to look for investment and acquisition opportunities.   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo from Shutterstock