Another bruising day for Purplebricks as market reacts to BBC radio investigation

Purplebricks’ share price endured another bruising day after the markets were given their first chance to react to the Radio 5Live investigation in which the firm’s UK CEO Lee Wainwright appeared.

Shares dropped 7.2% (30.2p), having fallen nearly 15% on Thursday and Friday last week.

The firm’s share price closed yesterday at 388.4p.

The fall appeared to be a reaction to the radio programme on Sunday which investigated online estate agents, and in which Purplebricks admitted that its figure of 78% of homes it lists are sold is based on sales agreed – those sold subject to contract – and not on sales completed.

Lee Wainwright, UK boss of Purplebricks, appeared on the 5Live Investigates show with Adrian Goldberg in a bid to defend the company against bombshell claims by analyst Anthony Codling of Jefferies.

Wainwright said the Jefferies’ allegation that Purplebricks sells only 51% of listings was “a very big claim – and it is not true”.

However, his appearance did not appear to convince investors.

Meanwhile, Purplebricks received more criticism from analysts – this time from Chris Beauchamp, chief market analyst at IG, who questioned whether or not Purplebricks’ decision to go on the offensive was the best strategy.

In a note to investors, he said: “Purplebricks’ defence of its model after Jefferies sell-note may make the management feel better, but the image that is created does the company no favours. Better to suffer in silence and let the performance speak for itself.”

Purplebricks was the biggest faller among listed agents and portals yesterday, followed by Countrywide, which dropped just over 3% to 90p.

ZPG was down 2% to 333.4p, and LSL was down nearly 1.8% to 278p.

Other fallers included TPFG (down 0.7%), Rightmove (down 0.8%), Savills (down 1.3%), and Foxtons (down 0.1%).


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  1. J1

    If you look at what has happened to the US stock market it’s time to grab your ankles if you are a trader  !!

  2. Richard247

    The dows is down 1000 points FT 100 is down 109 points all house builder stocks are down  so I think it’s wishful thinking that pb is down because of a radio show

    🙂 🙂

  3. mistermark

    Worrying when a CEO with 26 years exprience in agency thinks a done deal is when a property is sold subject to contract ??  quoted 78% sold (- 30% average U.K. fall thru rate) = 48%. !!!

    1. Robert May

      I said it yesterday and I’ll repeat it; less than a month in position means Mr Wainwright will still be finding his feet. He will be taking on face value the numbers presented to him and trusting they’re correct. He has no option other than to regurgitate them as fact.

      I’m personally curious how the sale agreed to listings ratio has jumped so dramatically from a reported 47% in April 2016 to apparently 78% now.

      My opinion is Mr Wainwright  should be given a chance to get his feet under the table and his tea made just the way he likes it.  Once he’s settled in it will be interesting to see if he stands by numbers I find confusing and contradictory when compared with previous stories, claims and statements.




      1. Philosopher2467

        Sorry Bob; being a ‘newby’ doesn’t excuse the misleading assertion that a property ‘sstc’ is the same as exchanged. In addition; what is ‘sstc’ in purpleland? Is it a ‘closed chain’ situation with the FTB as link #1 of the chain or the rarer beast, the ‘cash’ buyer? or as I suspect, someone agreeing a price and possibly instructing Solicitors and then having to start the selling process themselves???

        That would at least explain some of the ‘excessively’ lengthy periods between listing and completion; imo.

    2. proagent54

      I have to disagree. If youre a CEO of a public company you have to be totally straight with everything you state. I am of the firm opinion that he is out of his depth and having a background of a CW regional MD does not give the correct training or experience for a job like he now has

      1. Robert May

        My point is not contrary to  that but if you wander into a job and you’re seeing the numbers for the first time, 3 weeks isn’t enough time to question and verify them. There are 600 or so listing reps and now about 27,000 vendors all who have direct control, as Dompritch said, over things such as asking prices.

        Mr Wainwright is suddenly responsible for that tangled knitting and all that’s gone before his tenure.  He deserves our sympathy rather than criticism (for now)


        1. davehedgehog

          Hi Robert, I love your work and what you are doing for us BUT should n’t the issue here be, What sort of a company sends in a totally unprepared CEO to a radio show after 3 weeks in the job?…The proverbial ‘Lamb to the Slaughter’. Schoolboy error, one a multi million pound corporate company shouldn’t make.



          1. Robert May

            100% bang on! The point of my posts were to get readers to consider what has been done to Mr Wainwright rather than just focusing on what he’s said. 

        2. Philosopher2467

          A valid observation however, not accurate. The chap in question has been at PB for longer than the 3 weeks you mention, in a relatively senior position therefore, he KNOWS the numbers and if he doesn’t he jolly well should. It’s likely a case that he’s just perpetuating the misleading propaganda that appears from throughout the organisation imo.

          1. Robert May

            Wow! Now I am confused.

            1. Malcolm Barnard

              Hi Robert – Mr Wainwright was recently promoted from Chief Operations Officer. A position he held from March 2017.


          2. Philosopher2467

            Does anyone really believe that Mr Wainwright’s joining of PB way back in March 2017 in some way is his ‘philanthropic calling/mission’?
            Do you think he is interested in getting PB to be transparent in what they purport to produce and to be 100% straight in what they report as their performance and the associated benefits to their ‘customers’. Or; was it a job away from the carnage that was CWD?
            PB to date ‘appears’ to be a company less interested in being transparent for, most importantly, those who will part with over £1000 in the ‘hope’ of selling. Secondly; to their competitors. Are they more interested in maintaining inward investment and maintaining a share price that in the medium and long term is unsustainable???? Or am I just an old cynic?

            1. Robert May

              You’re not an old cynic you’re putting things in context and adding depth to the story.
              So Mr Wainwright has had enough time to look at the total listings, keep track of the sales agreed and divide the SSTC by the total listed?
              I don’t work there but can see it isn’t 166% of what it was in 2016

              1. Philosopher2467

                Thanks Robert; I wasn’t certain however, that was my conclusion based upon what I’ve read and heard.

  4. malcolmroy63

    Totally agree, trading for 25 years and always based fall throughs at one third of SSTC

  5. oldlettingsdirector10

    PB. 12 months and the share price will be on the floor I think. PB have had their fun. Slowly shareholder will realise no real profit return.

    Strange how the market does a full circle!!

  6. ARC

    It appears that ‘the cat is out of the bag’ so to speak in that some customers will pay anyway but with give or take the same chance as selling either high street or online. Does that mean that the vitriol on here can die down and we can see what decisions costumers based on that info some will see it as risk v reward and pay their money and take their chances while others will chose the high street. That is now the most interesting dynamic in this debate as I see it.

  7. Essjaydee51

    Err ok the industry average is deemed to be around 30% but most are below this however 30% of 78 is 23.4 not 30 and not wishing to be pedantic but the number remaining is 54.6%

    i just thought I would enter the correction before some mallard or other really put the webbed boot in.

  8. David Cantell


  9. AgencyInsider

    No sign of the dom & ducky show so far today. In fact the dom failed to materialise at all yesterday, and the duck only put in a fleeting appearance, quacked once, and paddled off again.

    Could it possibly be that the duo have finally realised that most of the people on here actually know something about agency and how it works – and have been right all along about their purple emperor having no clothes?

  10. Thomas Flowers

    PB more popular than Disney!

    Should that be an ASA complaint in itself!

    How about a survey of say 100 children:

    Would you rather watch a Purplebricks advert or Pinocchio?

    At least you can see when Pinocchio tells a ‘Porky’?

    See attachment, perhaps Lee could dress up as Pinocchio for their next TV advert?



    1. Woodentop

      TF, Thanks that brought a smile to my face for the day.


      This one fits the bill perfectly


      1. AgentV

        Still love this one and think about it everytime I see a post by a certain person;

    2. Philosopher2467

      Very, very amusing!!

  11. Property Paddy

    still falling:

    Price (GBX)
    Var % (+/-)
    -2.88% ( -11.20)


  12. J1


    PB share prices up 6% this morning   🙁



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