Purplebricks shares dipped yesterday after issuing a trading update saying that it expects revenue to rise around 445% to £18.5m to the year ended April 30.
Purplebricks also said it was on track to meet its full-year expectations.
Investors, who normally buy into just those expectations, seemed unimpressed, however, possibly over the update’s silence on its profits and costs.
Analysts also seemed uncertain.
Anthony Codling, of Jefferies International, said that without knowing how many properties the company had actually sold, it was difficult to gauge performance.
At one stage yesterday, the shares fell 13%, but recovered somewhat to end the day at 164.75p. On Monday, the shares were at an all-time high at 180p.
Comments (16)
Jeez – take a couple of days’ leave and look what kicks off!
Apologies to Robert May – I posted in relation to ‘the maths’ of PBs financials statement on the earlier (The Glorious 11th) article around lunchtime, not realising that you’d beaten me to it here at 09.24.
Trying to play catch up in chronological order isn’t always the best way to do things, I guess.
But, Robert – any more analogies and people will start to call you ‘Mr Hendry’ (ONLY JOKING – I SWEAR!!!)
On the subject of your analogies, however – I may be a thick Northener… but since when did the L2B Rally pass through Morden?
I would love to know what the “abandoned rate” is. That would be a figure that the vendor should be made aware of, I’m guessing but decades of experience would not surprise me to find it is over 50% but never above 25%. Anyone know?
There is a catch 22 issue with that. In between being required to publish cold hard facts once a year there is an opportunity to err get creative and claim performance statistics that then once a year don’t actually tally. “Yay we scored in all our games” without mentioning on 9 occasions that was enough to beat the competition, once it was the same, but in 34 games they lost.
The numbers on their site suggest they are no better and no worse than estate agents at selling property, which means based on an extrapolation of their numbers about 11,000 vendors gave them about £9.25 million to list their property but not achieve a sale yet. This is why there are calls to get the ASA to challenge adverts by fixed fee listing firms that claim to SELL a property for £xyz. when for that is only the case for half of them.
forgive the extra post but I’ve been asked a question about the maths; £18.5 million represents about 22023 listings for the year up from about 4948 the previous year which would have pulled in about £4.15 million turnover (22.47% of £18.5 million)
We’ve been told that 3000 listing per month is needed for profit, they have avearged about 1835 listings each month (61%)
Going back to the ‘I’m the Ron Jeremy hot lover of Agency’ story they appear to have listed about 13.3% of the 201262 listings they Quirkesquely predicted in 2014.
Somehow they have to list another 163% more properties average to start to make a dent in the £42.5 million they promised to deliver.
Call me old fashioned but I think if a Premiership manager had only average won 13% of matches I really don’t think he’d have a job. 455% improvement on 5.6% to 21.8% of target is nothing I would boast about unless it was to people who failed key stage 3 maths.
Please note all of the numbers used in these calculation have been taken from the PB press machine with the exception of the London/ Region listings ratio which is only as accurate as their portal listings. The numbers might be well out but so was the business plan that promised HUGE profits for investors.
Apparently I have to explain that in football terms (“it’s what agents know”) ; If I spend a shed load of cash to buy my way into the premiership, the team plays all season, it wins once and draws twice; that’s about 5% performance (Aston Villa did 15%) Ordinarily a team like that gets relegated from the bottom of the table down to the Championship. In their second season their performance improves but they win just 9 games and draw once. (Bolton won 5 and drew 15= same 21% performance) In football terms this is an expensive premiership team that in two seasons would be relegated down to League division 1.
This lot are mirroring what Leeds did in 2004 and 2005 but shouting like they’re Leicester
You lost me at football.
How about; instead of completing the London to Brigthon vintage car run, year 1 they got from Hyde park to Vauxhall Bridge; 3 miles instead of 60. In year 2 to they got are far as Morden which is 12 miles. On both ocasion investors were promised not only the full distance but record times too?.
Let me have a context and will convert 5% (abysmal) and 21% (embarrisingly inadequate) performances into terms you can see just how bad theses numbers are.
T’is OK mr may
I got the numbers OK just don’t do footy.
Now if you said Abseiling and they only had 5% of the rope needed to go down then I would agree
Equally if you said they had more than enough rope to hang themselves.
Well
Were all on the same page then !
It looks more like a Herballife ponzi scheme these days, all the local “experts” are recrutining for staff, to (hopefully) bring on more property so they can take their cut before passing it further up the chain
445% more of not a lot is still ….. not a lot – I suspect that revenue might just cover the TV advertising but still well short of generating anything close to a profit. They were carried on the back of a hot market and massive PR /TV campaign – tighter market and savvy vendors will want a TRUE local agent that will get the job done rather than “list and go” – they’ve peaked and now they are public they cant get away with hiding the real numbers as well as they did – this sham is just starting to unravel the news for investors is only going to get worse.
PB still trading well over it’s value I suppose it’s share price isn’t unlike selling an unmodernised house. You cant sell it on what it is so you sell it on what it could be!
Funny if you think about it.
Bull sells !!!
“Have investors turned sour on clicks and mortar as they drop Purple Bricks” | This is Money bit.ly/23IDp9h
After a number of calls and conversations with broadsheet journalists recently, it seems as if the medias’ love affair with call-centre agents is waning
I was surprised at how much skin Mr Woodford has got in the game, though I’m not sure if its his or that of a few sheep who have been badly shorn. I read it was £8.5 million!
Why on earth would a firm that was business plan projected to have turned in £17million profit then £24.9 million for this past year need that level of investment? Surely the provision in the start up year should have been covered off in the first quarter of year two, anything less than that and things have gone very badly awry.
Since the “HUGE profits, my nads are massive and my poop don’t pong” story we were treated to 2 years ago I have been staggered at the audacity of a story that simply eclipses the stupidity of the King and his new cloak. I’m not sure if Woodford is the King or one of the tailors
Surprise surprise. When all they can do is focus on one specfic set of numbers.
Investors? “They’re like sheep,” says CEO of Purple Bricks” – Elite Business Magazine bit.ly/1VSFJLt pic.twitter.com/FsLfWyRNLO
As long as they keep their “experts” eh.