Magazine firm hit by mortgage pain
The housing slowdown in the UK impacted on the sector’s trade press today after What Mortgage publisher Charterhouse Communications warned on profits.
The magazine and website provider said revenues and profits had been “significantly” affected by market conditions over recent months, with mortgage lending at historic lows and the credit crunch tightening supply from banks and building societies.
Charterhouse said: “The well documented market conditions affecting the domestic mortgage market in the UK have had a significant effect on the company’s revenues during the last quarter of 2007.
“As a result, the company’s profits for the year ending 31 May 2008 will be significantly affected and are likely to be below market expectations.”
Shares in the group were down a third to 0.5p today after the announcement.
This week the Council of Mortgage Lenders said the amount advanced during December was £22.6bn (€8bn), the lowest figure since May 2005 and 25% down on November’s total.
There has been a steady stream of other gloomy news from the housing market. Earlier this month it was revealed the number of chartered surveyors reporting house price falls reached levels last seen during the early 1990s house price crash.
As well as the monthly What Mortgage, Charterhouse publishes Mortgage Finance Gazette and Mortgage Introducer, which is aimed at financial advisers. It also operates websites such as whatmortgage.co.uk and homebuying.co.uk.
The firm said cost cutting measures taken during the last quarter of 2007 and a relaunch of Mortgage Introducer would help “protect the business from further decline”.
Charterhouse said its other non-mortgage publishing and non-publishing products - including financial guides such as Investing for Growth and The Corporate Register – remained on target to meet forecasts.
It also said it was in a good position to benefit from any market recovery in the coming months.
