Purplebricks is close to a flotation, Sky News has reported.
Its city editor Mark Kleinman says that Purplebricks, “one of the UK’s fastest-growing online estate agents, is drawing up plans for a stock market listing that would provide capital for an aggressive assault on established high street rivals”.
Purplebricks was launched almost a year ago by Michael and Kenny Bruce.
The brothers, who formerly ran Burchell Edwards in the midlands before selling it to Connells, operate a hybrid service with local property agents backed by an online offering.
Purplebricks has backing from Paul Pindar, former Capita boss, and star fund manager Neil Woodford, who has invested £7m into the company. Another backer is said to be Errol Damelin, founder of Wonga.
According to Sky News, Purplebricks is understood to be planning to hire advisers imminently as its first step towards a stock market float.
Purplebricks, which charges £799 upfront, was reported last autumn in Eye as planning a stock market launch for early this year.
The Sky News report is here
Comments (5)
… one of the UK’s fastest online estate agents?!
That’ll be the most misleading phrase!
Bubblebricks Property Listers!… that is an accurate description of their service…. Property Listers!!
Agree,these investors are approaching this as a Dragons Den type opportunity only, where’s the EXIT! I remember Purplebricks in their opening offer to agents talked about the 3 year strategy and the interesting name here for those that follow the markets will see the Woodford investment. He is launching a new fund onto the stock market shortly and I think Purple is one of the biz’s included in the fund. What I do find interesting is the fact they are now advertising on TV NO UPFRONT fees…their model has changed already.
Which is another con because just like DFS all you can do is defer the fee. At least with DFS you get a sofa, with Purplebricks you pay whether you sell or not. Oh and their agreements do still offer a money back guarantee: you just have to get them the rights to find an “offer” in 12 months!!…..
I’m not sure this was much of a surprise given the investors in the company: they, like everyone else, realises that there is no long term future for a business thats built on taking instructions not in selling houses. It’s present fee structures will never see it make representive profits for the size of investment and if their fees go up they become less of an option.
The only way to make money with this business is to make a noise and cash in: that’s exactly what Pinder and Damelin are doing.
Couldn’t agree more. It does seem like many similar online listing agencies see floatation or crowdfunding as the only way to make money out of this business model. Amazes me how stock market investors see them making money in the medium/long term as well?