The Countryside Properties PLC (LON: CSP) share price crashed 28.7% after reporting that its revenues had fallen to £249.8 million, missing analysts expectations by a whooping £114 million.
The UK homebuilding and urban regeneration company also said that its CEO would be stepping down from his position immediately, which further spooked investors.
The company’s board said that John Martin, its current chairman, would step in as interim CEO until a replacement is found.
John Martin issued a statement saying: “Iain McPherson has led Countryside through a challenging period, including the Covid pandemic… I would like to thank Iain for his unwavering commitment and dedication to Countryside as leader of our business in the South and subsequently as Group CEO and to wish him every success in the future,”
Investors ignored the silver lining in today’s events, which was that the company is still moving ahead with its share buyback program as was initially planned.
Countryside also said that its net step stood at £72m at the end of 2021.
The abrupt resignation of the CEO following the disappointing results shocked investors, given that the UK’s property market was doing great for most of last year.
Investors should keep a close eye on Countryside shares going forward to see if there is more going on with the firm.
As prudent investors know, once a firm reports terrible news, some other bad news usually comes in most cases. So while countryside shares might look cheap at the moment, I would wait until the dust clears and we are sure that the company is on solid footing before jumping in.
*This is not investment advice. Always do your due diligence before making investment decisions.
Countryside Properties share price.
Countryside Properties shares crashed 28.74% to trade at 294.00p, falling from Wednesday’s closing price of 412.6p.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading