Property services group Countrywide has turned last year's half-year loss at its estate agencies division, which includes Bairstow Eves and Mann & Co, into a £19 million profit as group results for the first six months of the year hit a record £62.8 million before tax.

Christopher Sporborg, the chairman of Countrywide who today presided over his last set of results for the company, said the figures were also boosted by the sale of its £16.4 million stake in Rightmove, the just-floated property website, and the offloading of its commercial surveying division.

Last year at this time Countrywide posted interim pre-tax profits of just £3.5 million.

As well as owning the estate agencies, Countrywide arranges mortgages, sells life policies and carries out surveying and conveyancing services. Each of these areas performed strongly during the first half, including a 35 per cent increase in mortgages arranged to 28,651.

Mr Sporborg said these areas experienced "material uplifts in profit" and said business at the estate agencies had been boosted by a 24 per cent increase in house exchanges.

The chairman also sounded a confident note about the housing market, amid a mixed picture of the future direction of property prices and buyer demand after the Bank of England earlier this month hiked the cost of borrowing by 0.25 per cent to 4.75 per cent.

"While there are some signs the market is entering a seasonal lull, it shows no sign of extreme movement in either direction," Mr Sporborg said.

"We are disappointed that the Bank of England has chosen to increase interest rates at this time. However, we believe that the current market is sufficiently robust to absorb this increase, and provided [it]does not mark the first of a series of rate rises, and absent any other external shocks which might affect confidence, the market will continue to remain at current levels subject to normal seasonal fluctuations."

Mr Sporborg said he was confident of further strong profits and cashflow during the next financial year.

After Countrywide bumped up the interim dividend to 5p a share, analysts at Bridgewell said they would consider raising their earnings-per-share estimate to 16p from the current 12p for the full year.

Shares in Countrywide rose almost 2 per cent, gaining 4.75p to 406.5p. The rise values the property services group at £692 million. To track the shares click here

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