February 2008
Changes at top as Humberts feel pinch
By MIKE GOODMAN, City correspondent
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CHIEF Executive Max Ziff and executive
chairman Tim James have departed as the 80-office Humberts Group has not only
fallen victim to last month’s
Stock Market crash but to the housing market slowdown.
Shares in the firm, which are listed on the Alternative Investment Market, crashed
more than 50 per cent to an 8p low after the directors issued a troubled trading
statement on January 21 amid stock market turmoil.
The statement warned that its estate agency is likely to make losses and that
the group needed more finance.In announcing that Messrs Ziff and James were stepping
down, the statement said that John McLean, who joined the board only a month
earlier, would take on the role of executive chairman and the company’s
day-to-day running.
The Group, which has rapidly expanded in recent years and added 20 offices to
its ranks last year, was to have reported full year results to the year ending
September 30 2007 in January, but issued the trading statement instead.
The statement explained that while the full year results should be “in
line with market expectations”, trading deteriorated during the final quarter
of 2007 and that based on an expected trading loss in January, the six months
to March 31 this year was likely to show a loss.
The statement also admitted that although it had sufficient cash for now, it
needs to raise cash to pay for recent acquisitions which are being paid for in
stages.
According to our annual league table, Humberts ran 38 offices in January 2006,
61 a year later and 81 as at January this year.
The most recent major deal was the £2.4 million London firm of Thomas Currie.
Humberts’ problems are a sign that even the London and South East market
has slowed, as it operates in both these areas, along with the South and West,
and targets property in the £300,000 to £2 million price bracket.
Shares in the group hit a 100p high early in 2007 but had fallen to 30p by December.
They had fallen steadily following a profit warning in October. Despite the warning,
Mr Ziff later bought 150,000 shares at 40p.
The situation is also a headache for property tycoon Vincent Tchenguiz, a near
25 per cent owner of Humberts.
Chestertons, his other venture into estate agency, is faring better after being
bought from receivers some three years ago in what proved to be a shrewd and
well timed move.
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