Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK's Countryside Properties plunges as CEO leaves after weak quarter

EconomyJan 13, 2022 08:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Muhammed Husain and Aby Jose Koilparambil

(Reuters) -Countryside Properties' shares slumped nearly 28% on Thursday after the British housebuilder said its first-quarter performance was below expectations and Chief Executive Iain McPherson was stepping down immediately.

The company forecast adjusted operating profit for the quarter more than halved, contrasting with upbeat news from rivals. Britain's undersupplied housing market has stayed resilient during the COVID-19 pandemic, helped by low mortgage rates and government support measures for buyers.

Countryside said Chairman John Martin would conduct a review of the company's developments, without elaborating.

The company's shares, listed on London's midcap index, hit their lowest in more than a year.

Peel Hunt analysts said in a note the review could find internal operational problems, since the company reported robust market conditions and said the supply of materials and labour had not gotten worse.

Martin will stand in as interim CEO until a replacement for McPherson is found. The outgoing CEO joined the firm in late 2014 and became CEO at the beginning of 2020.

The homebuilder's shares have fallen 12% in the two years since, with Martin taking over as chairman from David Howell last year, following pressure from U.S.-based investor Browning West..

On Thursday, Countryside also appointed Browning West partner Peter Lee to its board, while reporting adjusted operating profit of 16.5 million pounds ($22.7 million) for the first quarter, compared with 36.6 million pounds a year earlier.

Britain's No.2 housebuilder Persimmon (LON:PSN) forecast higher profit margins for the 2021 fiscal year on Thursday, and smaller rivals MJ Gleeson and Vistry both reported healthy trading figures this week on robust demand.

Countryside, which last year had flagged delays to the start of work at its sites after coronavirus-induced lockdowns, has projects across London, north and central England among other areas, and is a key player in the affordable housing sector.

($1 = 0.7276 pounds)

 

UK's Countryside Properties plunges as CEO leaves after weak quarter
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email