 Business has got off to a healthy start in 2006 |
Estate agency group Countrywide has suffered a 20% fall in annual profits on the back of a drop in the amount of transactions carried out. Pre-tax profits were �31.7m ($54.7m) for 2005, down from �40m in the previous year.
However, it reported a gradual improvement in housing activity in the second half of last year and said the current year had started well.
Confidence had been boosted by August's base rate cut by the Bank of England.
Recovery
Countrywide is the latest in a series of estate agencies reporting a recovery in the housing market, which has been in the doldrums since mid-2004.
"In the second half, turnover increased in all divisions, whilst the estate agency business experienced a significant turnaround in profitability," said chairman Christopher Sporborg.
Mr Sporborg is set to be replaced by Harry Hill in 2007.
Countrywide is the UK's largest estate agency and residential property group and is one of the main shareholders of Rightmove, which floated last week on the stock exchange.
It said its remaining stake in Rightmove was worth �95.5m.
Shares in Countrywide closed down 9.25 pence, or 1.8%, at 483.75p on Tuesday.
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