Belvoir and Purplebricks shares both enjoyed uplifts yesterday.
Purplebricks shares rose over 4% after it posted a positive trading update.
It said it had maintained its 4% market share and expected to report an improvement in its marketing-to-revenue ratio.
While it expects revenues for the six months to the end of October to be broadly flat, it said that the group had enjoyed profitable trading.
An unimpressed writer on shares website The Motley Fool said that Purplebricks’ share price was nevertheless down 70% measured over two years, helped by the fire sale by former major shareholder and fund manager Neil Woodford.
Motley Fool analyst Harvey Jones said that despite yesterday’s upbeat trading statement, he remained wary: “Purplebricks was supposed to be a game changer, sweeping away the traditional high street estate agency model, rather than a company where flat revenues are seen as good news.
“You have to strip away all the early aura before deciding whether to invest, as well as examine underlying issues, such as how its flat fee system of payment works in practice.
“The group has stabilised, but it’s real attraction was rapid growth, and I don’t see that coming.”
Belvoir shares were also boosted by its announcement that it would be providing financial services to Yorkshire firm Dacre, Son & Hartley.
Belvoir described its own diversification into financial services as a win-win.
Belvoir said that following its acquisitions of Brook Financial Services and MAB (Gloucester), Belvoir now had 160 advisers, and that in the ten months to October it had written almost 8,000 mortgages.
CEO Dorian Gonsalves said: “We are really excited to be taking on the financial services for Dacres. Our financial services team based in Barnsley is well placed to support their network and is looking forward to working closely with their offices to build up the level of mortgage sales delivered to their clients.”
Patrick McCutcheon, residential managing director of Dacres, said: “Following a strategic review of our financial services offering undertaken in the spring of this year, we identified the financial services arm of Belvoir as being a service provider with whom we would be very keen to work.
“We believe that their management share our values on customer service and growth, and can deliver what we require to satisfy our own internal needs as well as those of our valued customers.”
The deal will add £100,000 of operating profit to Belvoir in the first year of operation.
Purplebricks shares finished yesterday at about 113p, while Belvoir shares ended 3% up at 121.5p.