Muhammed Husain & Aby Jose Kolparambil

(Reuters) -Countryside Properties shares plunged almost 28% Thursday, after the British housebuilder revealed that its first quarter performance was lower than expected and Chief Executive Iain McPherson is stepping down.

Contrary to positive news reported by rivals, the company’s adjusted operating profit forecast for quarter was more than half-halved. The low interest rates on mortgages and the government’s support for buyers have helped Britain’s housing market to remain resilient in times of crisis.

Countryside stated that John Martin, Chairman of Countryside would review the company’s development without providing any further details.

London’s Midcap Index listed the shares of this company, which hit their lowest level in over a year.

Peel Hunt analysts noted that the review may uncover operational problems within the company, despite the firm reporting strong market conditions and stating that supply of labor had not declined.

Martin will serve as interim CEO while McPherson’s replacement is identified. Martin, who was the outgoing CEO, joined the company in 2014 and assumed the role of CEO in 2020.

Martin, an American-based investor Browning West, forced Martin to take over the chairmanship from David Howell in 2012. The shares of this homebuilder have dropped 12% since then.

Countryside appointed Peter Lee, Browning West’s partner, to its board on Thursday. It also reported an adjusted operating profit (or $22.7 million) of 16.5m pounds for its first quarter, as compared to 36.6 million pounds last year.

Britain’s number two housebuilder Persimmon (LON) predicted higher profit margins of the 2021 fiscal years on Thursday. Smaller rivals MJ Gleeson, Vistry and Vistry also reported positive trading figures on strong demand.

Countryside is an important player in affordable housing and has been criticized for delays last year.

($1 = 0.7276 pounds)