Could Leaders Romans Be Next Estate Agency Casualty?

An opinion piece in Property Industry Eye, by Paul Smith CEO of Spicerhaart, has considered whether Leaders Romans could be the next ‘casualty’ in the estate agency business.

The report says that as well as posting a £21.6m loss in the nine months to the end of 2017 with £148m of net liabilities, group debt totals £265m most of which has to be repaid in five years. It says that when the company’s debts are divided between its 160 branches and other income generating assets the business has ‘the daddy of all debts’.

Smith says of the company’s owners: “Will they decide it’s time to pull out and sell up or perhaps sell off some of the crown jewels in the business to claw back the deficit? Or will it have to close poorly performing branches and put its hard-working foot soldiers out of work? Or do they have another plan to inject capital into the business? I can’t see it ever being floated, given what’s happened to Countrywide.”

He summarises: “All eyes will surely be on its next set of accounts, which are due to be posted at Companies House by the end of this month (September).”

As Smith points out, Countrywide’s problems tend to have dominated industry headlines of late. It has distracted attention somewhat from the fact that other companies in the business are having to work hard to make the numbers add up right now.

Source Property Industry Eye
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