EYE NEWSFLASH: Purplebricks trading update – reduced instructions are hurting the business

Purplebricks provided a trading update this morning ahead of its full year results that will be published on 14 July.

The online estate agent said that since the announcement of its interim results in January, the company has seen a continuation of lower volumes of new instructions coming to market.

These market conditions have impacted the level of net instructions which for the full year ended 30 April 2022 were 40,141, down from 58,043 in 2021.

Purplebricks expects its revenue is to be approximately £70m  for the full year and Adjusted EBITD is expected to be a loss of approximately £8.8m.

The firm’s cash balance at 30 April 2022 was £43.2m, reflecting the lower instruction volumes and exceptional costs in line with guidance.

The company’s full year results for 2021 showed revenues of £90m, EBITDA of £12m, and cash balances of 74m.

Helena Marston

The latest trading update follows a rather turbulent period for the online estate agency, caused in part by regulatory failings.

EYE revealed in November last year that Purplebricks had failed to properly serve legally required documents to tenants explaining their deposits have been put into a national protection scheme.

Purplebricks, which also reported recently that trading conditions have been “challenging”, is currently being investigated by Propertymark for potential tenancy law breaches.

Purplebricks last month confirmed the appointment of Helena Marston as its new chief executive officer.

Marston was due to start as chief executive on 4 April, but her appointment was delayed, subject to due diligence checks, which have now been completed.

Marston, previously the company’s chief operating officer, took over from Vic Darvey who quit in March.

 

EYE NEWSFLASH: Purplebricks confirms appointment of new chief Helena Marston

 

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20 Comments

  1. Ohmygod

    Can’t wait for C4J to do their part to make the PB figures even worse

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  2. 40yearvetran08

    Instructions are tight at the moment but good agents are doing very well. In a market where it is relatively easy to find buyers by placing an advert it goes to show that vendors do value a good agent and the extra they can bring when negotiating with multiple offers to get a premium price for them often off market. PB’s model just cannot do off market sales.

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  3. Malcolm Egerton

    Aside from the fact that agents cannot expect a repeat of last year’s boom, our clients are telling us that they now have comparables where PB have achieved significantly worse results and they are showing these to prospective sellers. It was always a case of ‘You can fool some of the people…’

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    1. janbyerss

      Really? Vendors are bothering to do this? Really?
      They are going onto to LR to seek out properties sold by PB and tellign friends about it?
      If one of my mates did that I wouold tell him to get a hobby.  

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      1. IheartRE

        I love janbyerss, she’s either a scapegoat, willing accomplice or a dopey wannabee. Time will reveal all to you janbyerss, just give it time and you will see.

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  4. Woodentop

    The honeymoon with the public is long over for PB. The public see them no different to another agent ….. they realise they are offering nothing new which makes them better service. The drip of ‘bad behaviour’ is sinking in and after all these years of spending mega £m’s what have they got to show for themselves? Not exactly inspiring and when the going gets tough that is when the real agents start to shine with the consumer and PB isn’t one of them going by these stats and its long history v the high street agents.

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  5. Epicurus

    Is it just a coincidence that this has come out at exactly the same time as the Sue Gray report?………………..a good time to bury bad news?…..

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  6. The No.1 Hybrid Agent Book

    Lots of us love a regular update on the slow and steady demise of Purplebricks. Some us who suffered having worked with them and those who worked as agents against them. Either way, any daily update on the inevitable end of this mess of a company is a joy for many.

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  7. IheartRE

    Poor Helena, but why would you step into a role like this?

    There’s no amount of money worth being tarred with the brush of trying to save a sinking ship that was sinking from the day it set sail.

    As much as I don’t like the smarmy Bruce Bros. they cleverly created a time bomb that made them filthy rich and their only complaint is they thought they’d make a lot more than they did.

    May Boomin Sinketh their current bank balance, not the bank balance of other gullible victims.

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    1. A W

      Poor Helena? I may be wrong but didn’t she declare bankruptcy to avoid paying off some creditors which was the reason her appointment was delayed… because she failed to disclose this somewhat pertinent information to the board.

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      1. IheartRE

        Yes, the story is a very sad story. The whole story is an international aftermath of confusing and meaningless decisions. Decisions based on lining 2 barrow boys pockets, never mind any collateral damage. It takes scapegoats, willing accomplices and dopey wannabees. To be there to the bitter end is a sad story too. Covert contempt and hostility remains, but the remaining money renneth out eventually.

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        1. janbyerss

          The barrow boys have made more money than you ever will

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          1. IheartRE

            Challenge accepted.

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  8. NHGURU

    An agent that charges cheap fees and slams the traditional model as being a rip-off is on the road to extreme difficulties and suggests a low volume market is a singular cause…..Agent that charges absolutely nothing at all ………………

     

    Please fill in the gaps.

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    1. NHGURU

      The opening line on the free-  pay nothing agents site inferred above (not bothered looking at the website before if I’m honest)

      We sell your Home faster -and for more- than any other Top UK Agent. Have we not heard that before?

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      1. janbyerss

        Yes every agent in the country says the same thing

        ZZZZZZZZZZZZZZZZZZZZZZ

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        1. htsnom79

          Not all, Jan, no.

          All of my best work in agency is a result of the hard yards of experience over decades, and if we all did the same thing then you wouldn’t see consistent out-performance vis a vis competitors year after year.

          Each office ( even within a larger group ) has the same or similar tools, but culturally we do our own thing. Consistent, multi year performance as best in class in all markets, economic climates and environmental shocks is about as much proof that you are going to get regardless of the claims made.

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  9. Madasahata

    Hahaha! You wait! Today 50-60 LPEs have been sacked with no warning! Whoever this Helen marathon woman is she clearly hasn’t got a clue. Slowly gunna get away is of all the LPEs before they close it so they don’t have pat redundancy! Good riddance…

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    1. The No.1 Hybrid Agent Book

      So PB report another drop in instructions and then bin even more LPEs. Its hard to believe that the execs there still don’t understand that the drop in instructions is likely due to their mis-treatment and disposal of the people that make the instructions happen. PB has always been a network of local businesses that made the greater business possible. Breaking these local businesses down from early 2020 made the continued decline that we are currently seeing inevitable. “We have opportunities to join the team in your area…” I bet they have.

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  10. The No.1 Hybrid Agent Book

    So PB report another drop in instructions and then bin even more LPEs. Its hard to believe that the execs there still don’t understand that the drop in instructions is likely due to their mis-treatment and disposal of the people that make the instructions happen. PB has always been a network of local businesses that made the greater business possible. Breaking these local businesses down from early 2020 made the continued decline that we are currently seeing inevitable. “We have opportunities to join the team in your area…” I bet they have.

    Report
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