Humberts shares suspended on AIM

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by Kay Murchie

One of England’s largest chain of estate agents, Humberts, has had it shares suspended on AIM pending clarification of its financial viability.

In a statement to the Stock Exchange, the group said the request to suspend its shares was made pending clarification of its financial position and added that it was investigating a potential restructuring.

The chain, which is part-owned by Vincent Tchenguiz the property tycoon, announced in February a major reorganisation of the business which may lead to a sale.

Earlier this year, shares in the company crashed by more than 40% after warning that it will slump to a loss in the first half of the year as the housing market slows.

Furthermore, chief executive, Max Ziff, and Tim James, executive chairman, stepped down in January.

Humberts has 80 offices throughout Britain and operates predominantly in the south and south-west of England and targets higher-end residential properties in the £300,000 to £2 million

Should the estate agent cease trading, it would be the first high-profile estate agency casualty from the housing market slowdown.

Earlier this week, newly appointed chairman John McLean, warned that the board was reviewing whether it would be able to meet the conditions for a proposed fund-raising rescue package.

In addition, it announced last month that it was to raise £2.25 million from shareholders in a move that allowed it to once again look to the future.

The news comes just one week after business monitor company, Debtwire, said estate agencies are closing due to the housing slowdown and the number of agencies has dropped from 13,000 to 12,000 already this year.

Furthermore, Movewithus, the biggest network of independent estate agencies, said of the estimated 12,000 agents, at least 4,000 will close by next year.

The UK’s largest estate agency group, Countrywide, which incorporates Bairstow Eves, Gascoigne-Pees and RA Bennett & Partners, has closed 50 branches so far this year and is planning more cost-cutting.