Shareholders in Purplebricks have been given notice of the AGM on September 15, and also been sent the 2016 Annual Report, according to a stock market announcement.
The annual report covers the year to the end of April and is an interesting document, featuring images including “Kenny” and “Michael” on the front cover – the “brothers” featured in Purplebricks’ highly successful TV adverts, and who founded the company.
However, as the report points out on page 26, Kenny Bruce is no longer a main board director, having resigned on November 19 last year – a month before the firm floated on the AIM stock market on December 17.
Kenny Bruce, who is sales director of the company, now has a 5.05% shareholding in the business, while Michael Bruce and his wife own 18.25%.
The main shareholder is Woodford Investment Management with 29.99%. The holdings were all measured on June 13.
The report goes on: “Michael has been the driving force behind the development of Purplebricks alongside his brother Kenny.”
The report describes how the brothers sold their previous agency, Burchell Edwards, to Connells in 2011 as a result of wanting to pursue the Purplebricks model.
The report, dated mid June, also refers to the setting up of a Purplebricks Foundation which will provide top-up funds for local community projects.
The report also notes that in 2015, Michael Bruce earned a total of £168,000 and Kenny Bruce a total of £183,000.
In 2016, Michael Bruce earned a total of £383,000, made up of £163,000 salary and fees, a bonus of £75,000 and long-term incentives of £145,000.
Kenny Bruce’s total earnings came to £168,000, made up of salary and fees of £59,000, plus £7,000 annual bonus and £102,000 long-term incentives.
During the 2016 year, Purplebricks employed 103 members of staff, up from 48 the previous year.
The annual report says that during the financial year to the end of April, it had 205 local property experts, up from 79 the year before.The model is for the local agents to be self-employed.
Some interesting case studies include James Humphries-Stone in Basingstoke, Hampshire, who now has five members in his team and claims to be number one for listings out of 79 agents in the town; and Daren Cridge, in London, also running his own business after recruiting three local property experts and anticipating taking on a further four over the next year.
Both say they are earning more money now than as a high street agent.
The annual report says it expects to see a migration away from the high street as the highly fragmented estate agency market consolidates “by virtue of the ease and simplicity that Purplebricks and its technology brings”.
In the financial year to the end of April, Purplebricks increased revenue by 448% on the previous year. Its operating loss as a percentage of revenue was 52%, down from a loss of 155% the previous year.
Purplebricks is next launching in Australia.
A spokesperson told EYE over the weekend that Kenny Bruce is still totally involved in the running of Purplebricks, as previously.
The spokesperson said: “Kenny is sales director. He along with several others resigned as directors to enable a more compliant Plc board including the CEO and CFO only from the executive team.
“He is totally involved in the running of Purplebricks as previously. It is very normal for a Plc board to be comprised of mostly non-execs.
“The adverts are actors who represent Michael and Kenny.
“The annual report was posted to shareholders recently which must be posted or made available online at least 21 days before the AGM.”
And how many of those 205 ‘local experts’ were or are legally registered with an approved redress scheme, HMRC money laundering etc?
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Total number or percent? Either way it will be a nice low number.
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I suspect very few Chris, but it’s ok. They get away with portal juggling (allegedly) – why not illegally trading through not being correctly registered?
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Is ‘earned’ the right word to use? I’m not sure it is. The owner of a business that makes money ‘earns’, people who run a firm that is making substantial losses are surely just taking money that has been invested rather than earned.
To suggest in a loss making firm that the staff are earning more than they would in a firm that is having to conform to normal business practice is just self deluded spin.
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Hear hear
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Wholly agree!
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Internet based platform predicts move away from traditional high street agents in its annual report is hardly news now is it? Now had they said it the other way around, now that would be news!
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One could almost overlook “In the financial year to the end of April, Purplebricks increased revenue by 448% on the previous year. Its operating loss as a percentage of revenue was 52%, down from a loss of 155% the previous year.”
Except just how much more business do they need to generate to even break even?
I suspect if they spend another £12.5m in advertising and increase they “self employed” staff by double they might.
But that probably wont happen and they’ll all do a “Kenny” and get rid of their shares before long!
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Will PB ever make a profit in the UK?
Blimey….So a company that lost £12 million in 2015 has paid out £247,000 in ‘long term incentives’ to the Bruce Bros!
Why ‘long term’ and not ‘short term’?
Is it because PB are not anticipating a profit any time soon?
As I have said before. All PB have done is replace branch costs with National Advertising costs of £1.3 million PCM whist providing a lesser service! Anyone can buy market share.
This year it appears that PB shall either have to triple their fees or triple their turnover to BREAK EVEN.
It is now becoming apparent that not enough sellers/landlords are’migrating’ to the PB offering.
It is PB who are ‘migrating’ to more lucrative, higher agency fee markets, such as Australia.
Could Australia be a bridgehead to ‘brexit’ the UK market?
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Misleading sellers, misleading investors, misleading staff…..this wouldnt normally make you £120k salary. Welcome to the future.
If purple bricks did ever get rid of the honest high st model they would be dead in the water. I would charge £500 with no upfront payments if i lost my business to this dishonest business model.
Watchdog should have been all over this scam by now. Promise the earth, deliver what you want, get paid anyway…but cos they are on the tele it most be ok.
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when it comes to being “all out” braising, you gotta smile at these PB boys.
They would try their best to make manure smell like Chanel no5 if you paid them.
Best spin doctors since Alaster Campbell without a doubt.
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All companies are spin doctors. This isn’t anything new.
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Those comments,smell like Chanel no.5
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So what is the dividend to shareholders? I said this last year the only winner is the directors fat cat salary while investors take the risk on a hope and prayer. Wasn’t SPIN a term used to lie but politically correct for politicians!
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