Purplebricks’ share price plunged to an all-time low on Wednesday, falling 12.5% in a single day to just 6.36p, before recovering to close the day at 7.04p.
The share price was in freefall yesterday afternoon before the struggling online estate agency announced that it was giving Strike more time to complete sale talks.
Strike now has until 10 May to decide whether to make a formal offer for Purplebricks after more ‘detailed’ negotiations in recent weeks.
Purplebricks recently announced that its ‘turnaround’ plan aimed at focusing investment in key regions where it is still profitable ended up costing it more than it expected, and disrupting sales instead of boosting them.
The online estate agency has been further hampered by the downturn in the property market in recent months, driven by the sharp rise in mortgage rates deterring purchasers and vendors.
Purplebricks said full-year adjusted underlying loss would come in between £15m and £20m – larger than the previously expected loss of between £8.8m and £11.3m.
The online estate agency has seen its share price drop sharply over the past couple of years following a series of woes.
Regulatory failings have had an adverse impact on the company, contributing to the fall. Shares in the AIM-listed firm have fallen from 103p at the start of January 2021, while the company floated at 95p in December 2015.
Shares in the online estate agent have plummeted since its all-time high in 2017 of 525p.
Lecram Holdings Limited, beneficial owner of a 5.16%% stake in Purplebricks, has long called for Paul Pindar, chairman of Purplebricks, to be removed from the role.
The activist investor wants Harry Hill, former chairman and CEO of Countrywide and co-founder of Rightmove, to be appointed to the Board.
Purplebricks sale process ‘ongoing’ as agency given more time to ‘Strike’ a deal
And then there were only 2 for now! How long before good old Yopa , yep remember them?! Go as well!
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Purplebricks recently announced that its ‘turnaround’ plan aimed at focusing investment in key regions where it is still profitable ended up costing it more than it expected, and disrupting sales instead of boosting them.
When I was at PB every decision was ridiculous and not only did the DSD, ADs know more than the management, so did most of the LPPs.
When you keep recruiting people with no agency experience, who then fail time after time it baffles me. The people at the top carried on making one terrible decision after another yet they were not held accountable.
The top management team at Purplebricks of fully responsible for all the failings. The audacity to think you know more than experienced people below you and then blame others is scandalous.
Purplebricks had some wonderful people that worked there. It’s a shame. They all thought they knew best and wouldn’t let that there ego ask people below them with more knowledge.
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It just goes to show, despite everyone and their dog trying to reinvent the wheel when it comes to running a successful estate agency business and despite a lot of people who think its ‘easy’ to be an estate agent, that in fact it is anything but. You need good people from top to bottom, you need experience and you need local knowledge as well as all the givens, hard work, positive attitude, long hours… Perhaps people will start to realise this and give Estate Agents a bit more respect.
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Market forces will always dictate how good a company will be and to survive. The model was broken from the very beginning and its tactic was to ridicule those already in the industry in the minds of the public to win instructions and used the worst sale technique, sell service on price. Well as time passes it becomes clear for everyone as to how good a business really is. The public did not ditch the high street and jump to any of the on-line only regiments in real numbers, just about all have lost the battle and no longer exist.
It was the city that was propping them up with outlandish market valuation, investors hoodwinked into piling in £m’s and only to discover it wasn’t a good bet after all? Never ceased to amaze me how poor if any, research was done. The only winners were those that championed ‘Commissary’ but bailed before it failed. Still no dividends? But what we do no is year on year losses which should have been a wake up call long before now …….
Purplebricks said full-year adjusted underlying loss would come in between £15m and £20m – larger than the previously expected loss of between £8.8m and £11.3m.
Says it all, no business is a success if it only looses money and after how many years? should be a warning for any future investor to do some research.
Importantly the model hasn’t changed, so one would think the status quo for success or lack of, will continue?
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self employed-now employed
Cheap fee- now more expensive fees-no competitive edge
Good ………but cringe-worthy in-your-face advertising on TV- now rarely seen and rubbish
Inspirational leadership-Estate Agents running the show -errr now not
No FS -in-house FS but not writing?
So a few changes to the model. Doesnt work either.
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Is everyone forgetting that Strike made 40% of its workforce redundant at the end on January 2023 and has now somehow found the money to potentially ‘buy’ purple bricks and take on even more debt on top of their own.
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