Shares in online agent Purplebricks bounce back to launch price

Purplebricks started the new trading week with its shares practically back to launch price.

They ended on Friday at 98p, just 2p short of their 100p price at flotation shortly before Christmas. This morning, in early trading, the shares made up the 2p shortfall to reach £1.

The recovery is remarkable for the online agent, with its shares having sunk to 72p.

Purplebricks published its interim results last week.

That same day, there was share buying to the tune of nearly £500,000 by chief executive Michael Bruce and chairman Paul Pindar.

In its interim results, Purplebricks posted a loss of £6.4 for the six months to the end of October last year.

Purplebricks sold £25m of shares through its IPO at £1 each, valuing the loss-making business at £240.3m.

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30 Comments

  1. Robert May

    Let’s hope Bruce, Pindar, Woodford, Zeus and co have got enough cash or can convince enough people to keep it there.

    I personally don’t think the profits predicted  by the firm are achievable or sustainable.   £25 million by May 2016?  Really? I can’t see it.

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    1. Property Ear

      Entirely agree, it’s pie in the sky.

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    2. Robert May

      Oh no Oh my, someone disliked my opinion.

      May 2016 is  4 working months away and with the last reported figures I saw showing  a £5.44 loss I am a bit puzzled where enough business is going to come from to make £25,000,000 profit.

      With the ability to hit the dislike button mastered I suggest  you attempt to master the 15 basic buttons on a calculator. The number don’t add up.

      “XX times this, YYY% more than that” it is all rhetoric and spin that will all to easily bamboozle fools.

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  2. ARC

    Good luck to them I say whether pie in the sky or not. I think that the modern term is haters gonna hate! Why is there so much desire to see people prepared to innovate and try something different fail? Both PB and OTM to name the two obvious ones.

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    1. Property Ear

      Let’s face it ARC, we’re in a highly competitive business where it’s dog eat dog so of course we want to see the other guy fail.

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      1. Property Paddy

        I don’t want to see any business fail I just don’t think PB has any real disruptive technology to make a difference and in fact they don’t use local newspaper advertising so are entirely reliant on page views generated by……………. RM & Z.

        OTM want PB et all to fail but they too are not adding any significant value to their signed up advertisers because they are not marketing their site aggressively enough to take traffic from RM or Z.

        If you want PB to fail, you have to get OTM to no1 for house buyer traffic.

        OTM want to be no 1 they have to spend a lot more money advertising their site and improve user experience.

        There is so much that needs to be done before you see off the likes of PB.

         

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        1. Client1st

          No. If OTM want to be number 1 we have to make it so. Its our site. All OTM members should withdraw from RM, then how long would it last. We are feeding supporting our competition when we could stifle it now.

          Amazing The chairman and CEO buy £500,000 worth of shares and the price bounces back up, what a surprise. Nothing to do with success just spin. The purchase may have cost them nothing because of the increase in their existing shares. CLEVER!

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      2. ARC

        Totally agree. The bit I find most interesting is that all the people wanting them to fail are convinced they will, which surely suggests that there is no threat. So is it that they think there is a threat and if they say it’s going to fail enough times they believe it will?

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        1. Robert May

          Bruce said he would deliver £25,000,000 profit by May 2016, it isn’t hating to suggest he  most likely won’t won’t.

          it isn’t hating to watch with incredulity them list and re-list properties which are then displayed as new to the market

          It isn’t hating to  point out that a territory that averages 20  towns isn’t local.

          It isn’t hating to point out someone with no qualifications isn’t qualified.

          I personally don’t think Purplebricks are a threat to anything but their investors wallets.

          I can’t see how  Purplebrick will overcome their listers are anonymous other than to a tiny % of their area without a massive and continued marketing spend that will devour any profits.

          You very possibly work for them or have invested, if that is the case I would  have advised you against both.

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          1. ARC

            As it happens it’s neither of the two. I have no interest in it working or not to be honest all it appears I am guilty of is wishing a group of businessmen well which is apparently an alien concept to most others. I have not so far expressed my feelings on PB other than to wish them well and question why so many feel the need to knock them at every turn. For what it’s worth I think that it will never meet the very ambitious targets that it has set itself but will remain around for a few more years trying.

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            1. Robert May

              You  are not guilty of anything other than assuming  and voicing those who do not like  Purplebricks don’t have a right or cause to voice  their disdain and mistrust  as a counter  the spin  pumped out  about a very artificial achievement.

              The first of the month is always a busy day,

              Go onto Rightmove and look for a property in Liss in Hampshire  GU33 7BQ,  have a look for 2 pridentical properties listed for sale @ £725,000 and then come back and tell me why decency hasn’t got a right to be heard.

              not only was it apparently available in November it was also listed twice and removed from the market on  8th December only to be listed again twice today.

              Go figure why some people might think both the selling public and investors are being misled. it isn’t for me to say you shouldn’t wish them well but it says quite a lot about you if you do.

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              1. ARC

                That’s all very interesting but any half intelligent member of the public or investor will see that the open day was in November and that it’s there in error or assume the agent is lazy and not updated their listings, either way it doesn’t reflect well.

                Despite what you may think of my opinion I will continue to wish them well and you too, I hope the big purple monster doesn’t steal too much business with it’s false listings.

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                1. Robert May

                  Only it has been listed twice, twice at the beginning of each month.

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                  1. ARC

                    Making them outwardly appear even more incompetent to anyone registered with RM getting the new instructions email as they will be thinking ‘who are this lot keep sending me the same house every month TWICE no less I’d never instruct them myself’.

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    2. Chri Wood

      “We give you a qualified Local Property Expert, a free professional valuation”

      The CEO of PurpleBricks has confirmed that the person who will give this “professional valuation” is probably not, in fact, qualified yet, the claim still stands on their website for customers and investors alike to read and trust. Nor, in my area at least, is the ‘expert’ what most reasonable people would deem as ‘local’ (over 70 miles from my home). I suspect that the RICS may also take issue with part of the above definition. But PurpleBricks are by no means alone in making similar claims.

      I think some regular posters on here, myself included, are occasionally mistaken for shouty luddites who hate to see others succeeding.

      The truth, however, is that these same people are long-standing, highly principled agents who see some estate agency firms, openly using misleading language, unqualified statistics or, invented savings and making claims to consumers and investors about their offering which are simply false.

      The reason Rightmove is currently undertaking an investigation into portal juggling by agents (an attempt to mislead the public and/ or investors about property numbers, time on the market and sale price achieved statistics) is, in no small part, down to the efforts of PIE and some of the people who regularly post on here.

      Most readers know that many of these claims don’t hold much water but are happy to stand by and hope that someone else will. The ASA has already ruled on some and more will, undoubtedly follow.

      I, for one, would much rather just focus on re-building my business after my trip to Afghan did not go as planned and was medically evacuated back to the UK prior to deploying with my unit to the front line. However, I find I am now fighting a different battle. A battle to ensure that the businesses with whom I happily compete, do so fairly, with honesty and integrity.

      This hater hates consumers being misled and ripped off by bad agents. This hater isn’t the sort of person to quietly lie down, unless I’m lining up a carefully placed shot.

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  3. Martin Burgess

    Good God!! the share price bounces back? Er.. the two top dogs pump a few hundred thousand buying their own shares to; bolster the share price but crucially; give investors confidence in the ‘product’ by buying into it.

    However, they’re only using money they’ve just taken out of it – to pump straight back in. None of ‘their’ actual, personal money has gone into buying PB shares.. I’m sure they wouldn’t want to risk that. All they are doing is bouncing the ball, pretending to show investors and potential investors confidence.

    However, as anyone will know who has ever bounced a ball, if you only bounce it once the ball reduces in height with every consecutive bounce before coming to rest on the ground.

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  4. Online Estate Agency Sceptic

    It just shows what a joke the AIM is! How on earth can a share price improve by c.35% on the back of further big losses and 2 connected parties buying some shares? All manufactured if you ask me!

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  5. PeeBee

    Above, poster ‘ARC’ states:

    “…to be honest all it appears I am guilty of is wishing a group of businessmen well which is apparently an alien concept to most others.”

    No – I reckon we are ALL aware of the concept of ‘wishing well’.

    We just save it for those that actually earn or deserve the wishes.

    BIG difference.

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    1. ARC

      Ah well I have a sunny disposition that helps me to try and see the best in everyone.

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      1. PeeBee

        Actually from where I stand you appear to only ‘see the best’ in a very small minority of people – and the wrong people to boot.

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  6. ARC

    Well I try with everyone even you so I respect the fact that you think I am, have a great day PeeBee

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    1. Robert May

      So  when Messrs Hall and Harris  decide to open a finishing school for young ladies you’ll wish them well or or does your knowledge of their antics make you a little less Pollyanna?

      I

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  7. ARC

    Good commentator and good artist. Do I condone there criminal actions, no I don’t. Likewise I never said I condone all of the actions of PB merely pointed out that most of them are making them look silly so why keep harping on about it, they will as I stated above give up trying eventually.

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    1. Robert May

      If a firm is up to things that breach CPR and the Estate Agents act 1979,  should those aware of and documenting the activities stop harping on in the hope they will eventually stop?

       

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  8. PeeBee

    ARC – you’re more than a puzzle to me  and to others from what I read and see.

    You seem to agree that what is being done is wrong.

    You seem to agree that this particular company exhibit gaping flaws in their operation.

    You even seem to suggest that the company will flop around like a landed fish until time takes its course and it stops wriggling.

    Yet you refuse to agree that this is screaming out as a bad thing for the industry – and the public we serve.

    I respectfully suggest you explain exactly where you stand on this and why.

     

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    1. PeeBee

      A ‘Dislike’? – for what, exactly?

      What in my post particularly spurred on the effort required to make you press the button?  And if you ‘Dislike’ the comment so much, or disagree with it so vehemently as to stab at the ‘Dislike’ icon – then why not get the reasoning off your chest so it can be debated?

      I’m sorry – but such an action perplexes me even more than does the poster it was aimed at – and who has kindly responded in a reasoned manner.

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  9. ARC

    As you ask so nicely I will try to clarify.

    I think that the public are entitled to have a choice in the service that they choose in whatever sector that may be. This is good for the client and the industry as it creates competition which improves standards. I am therefore happy when I see people that are trying to do something different and create increased choice and I wouldn’t want to discourage this, whether it be OTM or PB or anyone else. That is the sentiment that I expressed at the beginning of this thread and one I still standby.

    I do understand that the practices are questionable in a lot of cases and I could call into question the practises of some very well established companies look at the Connells letter to Santa! But rather than turn on me for wishing to see increased competition and people trying to be entrepreneurial rather than sticking to the norm, direct your concerns in the direction of someone that can address them appropriately. (As I am sure you have)

    I think that given the nature of some of these practices PB will eventually disappear but not because of any legal action that may come but just the public will see it for what it is but at least they are prepared to try it.

    If anything I think it opens up a wider debate around regulation but that is probably not for here and now.

     

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    1. PeeBee

      So… are you suggesting that we simply sit back in ‘silence’ and let certain unsavoury practices continue?  That our potential customers should be left to make their own mistakes based upon what they are being fed and how they swallow it?

      That being the case, that is where you and I are at diametrically opposite poles.

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  10. ARC

    No not at all I think I was quite clear that raising concerns about practise to the correct channels is to be applauded but taking the attitude that all new to the industry ideas and businesses are the devils work and should be shouted down is not as this is what helps to raise standards and the practice of certain people within businesses like PB may lead to greater regulation of the industry which in turn would be a good thing (in my opinion) so therefore question things by all means but don’t constantly go round bashing the new kids on the block as that could lead to it stopping and the good that comes from that for the industry and consumers will be effected. However most of the criticism of OTM and PB and others is thinly veiled fear of some competition (in my opinion).

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    1. PeeBee

      ARC – I am unclear as to whether this post in in response to mine of 12.40, or to Robert May’s earlier post of 10.30.

      Please clarify.

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