Humberts: Northern Rock affected business


Thu 1st Nov, 11:35:07 GMT

Estate agency chain Humberts has said the Northern Rock crisis affected its business in September as it revealed its yearly profits would not be as high as expected.

Northern Rock had to ask the Bank of England for an emergency bail-out after turmoil in the US mortgage market made it difficult for it to get enough money to continue trading.

The bank survived the crisis but Humberts said that the reaction to the situation "and the ensuing uncertainty…took the property and housing market by surprise".

"While the Group was profitable in September as a whole, a large number of buyers did delay exchanging on properties meaning the outcome for the month was significantly below forecast. As a result of this, underlying profit of the Group for the year to September 2007 will be below market expectations."

In its trading update, the firm also revealed that it is working to "diversify its focus away from the more cyclical residential estate agency market, as witnessed by our recent purchases of agricultural and professional service related businesses".ADNFCR-1143-ID-18338840-ADNFCR


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