Options to buy almost a million shares in Purplebricks have been exercised by a number of employees and Local Property Experts.
Altogether options have been taken to subscribe for 961,762 shares at £0.01p each.
The statement to the Stock Exchange says the options were granted under various incentive schemes, and that some of those who exercised their options subsequently sold a number of shares at £4.40 each.
Pursuant to the exercise of the options, an application will shortly be made to the London Stock Exchange for 961,762 new Ordinary Shares to be admitted to trading on AIM (Admission).
It is expected that Admission will become effective on July 10.
The company’s issued ordinary share capital following Admission will be 271,554,027 ordinary shares.
According to the statement, Joby Russell, Purplebricks’ chief marketing officer in Australia, bought and sold 30,000 shares.
Paul Vickerstaff, UK sales director, bought and sold 20,301 shares.
Four others bought shares but did not sell. They were David Shepherd, chief information officer; Matthew Farrow, finance director; Richard Jacques, lettings director; and David Kavanagh, chief technology officer.
The Local Property Experts were not named in the statement.
Bricks have now managed to increase their recruitment to over 480 experts .Some are doing really well ,so well in fact some of the Queen Bees are recruiting themselves sub -letting their territories That really is setting a glass ceiling for all those ambitious sub-tenants
They are still a number of open points where Bricks are seeking to recruit
https://www.purplebricks.com/join-the-team?ref=footer
Just looking through the list even Trevor Abrahamson might have difficulty in achieving 45k OTE in most of the areas
Aberystwyth and 10 mile radius
10 listed and a further 5 sold. Out of the 10 listed ,one property has just celebrated its 2nd birthday of unsoldness and 2 others reaching that milestone in the next 2 months
Cardigan and 10 mile radius
15 listed and a further 12 sold
3 of which aren’t actually in Cardigan
Bournemouth Reading and one up North as the search engine also takes Cardigan from the road!!
so thats 24
in addition 13 are listed by a developer on a single plot so guess he might have sorted out a discount for bulk
Take my hat off if the new recruit can ramp up those listings to make £45k
Herein lies the rub the new recruits will be desperate to get listings just to put food on the table That is hardly going to translate into a good customer experience.Critical mass?
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Ahhh, the glass ceiling at Purplebricks:
https://twitter.com/KramReklaw/status/882257025828257792
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PurpleBricks have ramped up their training capacity to 100 LPEs per month.
I make it 580 LPEs in the UK at present.
Not long before they reach saturation point if they manage to achieve that rate. High density populated areas must be priority.
I can remember Peel Hunt suggesting expansion to 1000 LPEs so time to get on board perhaps 🙂
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From what i understand an LPE is self employed and gets paid £250 per instruction.
Can we agree a traditional full service good neg is on £2,500 pcm? Plus a car circa £500 pcm, Plus a nominal pension £75 pcm, circa 4 weeks holiday, Plus tax and NI taken care for them.
An LPE will need to list at least 10 properties per month and (if legally trading) pay for their self employed stautus and insurances.
I know most corporate agents with full service and a lot of man power (at least four staff per office and a team behind the scenes) will have a target of 10 – 15 properties pcm.
The areas are starting to whittle down for the LPE’s and to acheive a wage a good neg would they are going to have to list the same amount as an office.
Do not think i would be jumping onboard any time soon …..
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Each area will be different.
Look at London only 23 LPEs sharing 152 listings last week (Zoopla).
According to Zoopla 4157 listings for the whole of the London market last week so plenty of growth potential if you compare to the West Midlands where PurpleBricks have a market share of 6% (RM – over the last 3 days).
The West Midlands were one of the first areas targeted so I’m assuming London and all other areas will catch up to an extent.
All figures approximate.
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Purplebricks have been misleading the public and investors with the claims and, given the churn rate of ‘LPEs’, LPEs’ appear, at least, to have not found the purple road paved with gold. Things are starting to unravel.
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I’ve bookmarked that one Chris. By the law of averages you’ll eventually get something right.
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At least he will.
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And here’s one of yours Woodentop in relation to topic on 28th April this year
Supply of property on estate agent books at lowest level since 2002
:
“Doesn’t bode well for budget model agents who need stock volume just to break even…. mentioning no names but lets see how they spin it when the next accounts are declared to shareholders.”
The results were ahead of broker consensus with 89% year on year growth in instructions. Not spin, figures substantiated by revenues figures. All to be confirmed by a top auditor. 🙂
Chris is unable to substantiate his claims. It was only the other day that he suggested that there was a rumour that there was a high rate of churn of LPEs. Now he’s implying there is. I bet he doesn’t even know the churn rate. Everything is based on specualtion and wishful thinking. He quotes data from Devon & Cornwall an area which he said is covered by a single LPE (this was a while back). Hardly reflective of the National picture.
If you try to dispute his blog statements he doesn’t accept the post. If you dispute his LinkedIn posts then he deletes it. If you dispute his tweets he removes you. 🙂
Out of 369 LPEs with PB on 23rd December last year, 328 are still with them. 6 of the ones who have left were letting LPEs.
Sounds like LPEs are pretty happy with their new line of work to me given the rapid growth in numbers and that that some areas will be problematic. Also it’s too big a big step for some people to go from employed to self employed. Then there’s the usual reasons why people leave a job.
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“Look at London only 23 LPEs sharing 152 listings last week (Zoopla).”
What exactly are you classing as a “listing”?
Would you class THIS – http://www.zoopla.co.uk/for-sale/details/43184577#h0PWxJlFKTDM6m1i.97 – for example?
Or THIS one – http://www.zoopla.co.uk/for-sale/details/43534042#B2SiLkvL3D7Rjlcy.97 ?
How’s about this – http://www.zoopla.co.uk/for-sale/details/43734003#8pFraKYjCuRz2XYk.97 ?
and, if not – why not?
Whilst I appreciate that they may be too recent for you to have counted them in your figures above, would these three examples fit inside your box labelled ‘listed within the last week’ say by the end of this week?
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PeeBee,
All my figures are estimates. I did say the figures were approximate.
Remember when I estimated 100% instruction growth for PB for the year to the end of April 2017? The actual figure was 94%.
In response to my estimate you stated “Meanwhile, I’d predict 60% YoY – with a wind behind them – and that being reliant on every ‘listing’ being a genuine, FIRST TIME listing.”
Also “Can’t wait for the 1st May to call you out on that one.”. Funny I didn’t hear from you when they gave a trading update in early May or when the actual results were announced.
I haven’t checked the listings you point out but you have repeatedly exaggerated the effect of these things on the figures and I’ve grown tired of checking because I only need an approximation. I believe your repeated questioning of figures on here and also your tweets has helped generate complacency among Estate Agents.
As you can see from my close approximation for the 2017 results I have developed a pretty good proxy for monitoring the instruction growth & market share of PB.
I also have a proxy for measuring listing to land registry sales conversion rates and I reviewed this earlier in the week to see that about 4% of the properties had transitioned from SSTC to being sold in the land registry with indications being that the sale was by PB. Obviously my proxy has not been tested against actual figures yet but the value I now have is 69%.
What figure was it being bandied around on news sites and other published articles? I see a certain blog stating “the 60 to 70% of customers who didn’t go on to sell would have paid almost half a billion pounds to these firms for nothing” and then a later post “And the news doesn’t appear to be much better for those that did go on to exchange. Of the 25% who did exchange contracts”
I use Rightmove data for the land registry and note that it takes quite a bit of time after the registered date to actually appear in Rightmove as ‘sold’ so the 69% figure could still increase.
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