Estate agent Humberts affected by cooling property market

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by Kay Murchie

Humberts Group, the estate agency and surveyor that is part-owned by property tycoon Vincent Tchenguiz, has revealed a major reorganisation of the business which may lead to a sale.

Following a slowdown in the housing market, the Aim-listed group has stumbled into the red, writing off £18.4 million in recognition that businesses it has recently acquired are much less valuable given the economic gloom.

This leaves the estate agency with a loss for the year to September of £17 million, compared with a profit of £1 million 12 months ago.

A spokesperson for Humberts said it is ‘not prudent or appropriate’ to pay a final dividend and also concedes that there has been ‘little improvement’ in trading lately.

A fall in housing transactions have had an impact on the group’s revenues, forcing management to ‘assess the group’s strategy and prepare fresh internal plans’.

Last month, 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 last month.

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 price bracket.