10:12am UK, Tuesday June 10, 2003

Countrywide Assured Group, owner of the largest estate agency networks, is expecting its annual results to be significantly below forecasts.

The company blamed weakness in housing demand and a deterioration in prospects at its Life Company.

That was due to a high level of policy lapses and complaints.

Set-up costs associated with expansion in Spain and re-mortgage conveyancing would also hit this year's results, the firm said in a statement.

Weakening confidence

The company posted earnings per share for 2002 of 15.89p in March - up 38% on 2001 - and the consensus forecast for 2003 was, prior to the warning, 13.9 pence.

In April, Countrywide said profits at its house sales unit would fall this year due to lower sales resulting from weak consumer confidence.

On March 6, Countrywide said the year had not started well as it posted a 47% rise in 2002 pre-tax profit to £82.8m.

That included £40.2m from its house-selling agency division.