The UK's largest real estate agent Countrywide has cut its half-year adjusted core earnings forecast, saying the market in the first half continued to be subdued.
The company said it was focused on rebuilding its sales pipeline, which was significantly below 2017 levels, and said it expects to substantially close the pipeline gap by the end of the year.
Countrywide said it now expects adjusted core earnings to fall by about £20m in the first half from the same time last year, adding that it does not expect the shortfall to be recovered in the second half.
It said it March that adjusted EBITDA would be about £10m lower in the first half of the year.
Countrywide has lost market share to other competitors in a market where demand has been hit by higher property taxes and Britain's vote to leave the European Union.
The company is also planning to lower debt by at least 50% through additional equity financing.
Countrywide said it was looking to put in place a long term capital structure to reduce debt and to support its turnaround plan and growth, but did not immediately give details on the equity financing.
The company said its major shareholder, Oaktree Capital Management, and its lender group were supportive of the equity financing.
