Shares in Purplebricks plummet as investors are spooked by widening losses

Shares in Purplebricks yesterday endured a bumpy ride on the stock market, as investors showed their displeasure at widening losses.

The business reported a step-up in UK profitability, measured in EBITDA, but group operating losses of £25.6m in the six months to the end of October – more than double its previous six-month operating loss of £11.4m.

The shares were immediately battered, sinking as trading started yesterday morning.

By mid-afternoon, the share price had dropped 15% to 127.5p, with 580,000 more shares traded than normal, suggesting that some backers had decided to off-load their stakes.

The shares ended at around 12% down, to start today’s trading at 131.5p. Major losers were investors in Neil Woodford’s funds.

His 29.2% stake in Purplebricks had £16.4m wiped off its value yesterday.

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19 Comments

  1. GPL

     

    Purplebricks – Virtual Property Listing Company.

    Unfortunately their losses are NOT Virtual.

    Investors….. reach for your Parachutes now!

     

     

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    1. JVSOZ

      Selling now is a good idea! They’ll be 50p soon.

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  2. Moveaside01

    There it goes! The penny has finally dropped for all these ill informed investors.
    No turkey for Axel Springer this Christmas …

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    1. AgencyInsider

      Not strictly correct Moveaside01. They already bought the Turkey.

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      1. Moveaside01

        Too true AI, and like the Turkey, they’re stuffed as well?

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    2. Chris Wood

      They bought a turkey a few weeks ago. They are now stuffed.No more gravy train, they are roasted. Brussels anyone?

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    3. AgentV

      Did you hear about the turkey that got into a fight. He got the stuffing knocked out of him.
       
      BSOS23PC

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  3. htsnom79

    The problem with having ” 100M cash on hand ” or whatever it is, is that you lose the sense of the value of it, they haven’t earned that money, hubris.

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  4. Property Poke In The Eye

    You can only lead people down the garden path for so long, before you notice no more path.

    They been burning CASH for many many years now without proper profit.  The SPIN is over.

    IF ANY INVESTORS ARE READING THIS.    CUT YOUR LOSSES NOW.

    PURPLE BRICKS, LIKE MANY OTHERS ARE FOR SALE BY OWNER MODELS/DIY, which just won’t make any decent money.

    The disruptors have once again disrupted themselves and the public have finally started to wake up.

    Happy Friday people!!

     

     

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  5. Hillofwad71

    What is clear is that they are still spending large over £13m in sales and marketing  in H1 . HO costs increased  to £9m in UK So plenty of costs to  apply the sword if necessary !!!

    To be fair although the growth in UK has become sluggish – the market hasn’t been kind

    There is still a distinct feeling that HO is full of ” mates of the Bruces” some of which have been over promoted and over remunerated. They are going to be hard to shift and are a barrier if any talent  comes through

    New York  will certainly set the scene for their American dream,Early days but a brief skip thru Zillow shows very little traction

    Very few listings or deals yet.The hardest nut to crack.Jury certainly still out

     

    https://www.zillow.com/ny/real-estate-agent-reviews/?name=purplebricks&regionID=43&locationText=NY

     

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  6. smile please

    Well 2019 with all its challenges is only going to see their loses increase.

    Hope their investors have a strong stomach as they will need it.

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  7. Probably Pork in the Pie

    Only for so long will people back and invest in your business without seeing a return.  The demise of Hatched and eMoov proves this. This turkey is coming home to roost!

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  8. DarrelKwong43

    A matter of time surely

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  9. Woodentop

    £10.2m loss in Australia and £20.5m loss in USA.

     

    Its 2018 Net income is also listed at minus £27.6 million.

     

    I see on AllAgents their customers are giving more than a few 1star rating for poor service or lack of!

     

    The market could dive with a no deal Brexit as home owners tighten their belts, that will cut the jugular of PB customers income.

     

    Woodford can’t sell more than 0.75% of his group shares or a red flag is triggered at Alternative Investment market AIM.

     

    Over 70% of share price has been lost this year ….

     

    The writing is on the wall.

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  10. Ostrich17

    £100 million net cash at end October.

    Nearly 3 months on and they have also spent £11 million on Homeday.de Joint Venture – they are probably down to their last £75 million now?

    Without further investment, it is only a matter of time before they run out of cash – perhaps we could run a book on the actual date with proceeds going to help the starving LPE’s ?

     

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    1. Woodentop

      June 2019 triggered by fall out of No Brexit deal.

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      1. Ostrich17

        I am drawn to Friday 13th December 2019.
         

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  11. Tj14001

    Also interesting to read how many and the value of shares that have been sold by the Group Directors, don’t think I would be too happy if I was an investor.

    https://www.sharesmagazine.co.uk/shares/share/PURP

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  12. simpletruth47

    Biggest joke is Woodford bought this dogs&*t stock in his income focus fund. I sold out of that and EIF off back of that. 
    PB clearly has no place in any fund with purpose of providing income.

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