Head of Purplebricks resigns and company cautions investors about expansion

February 24, 2019
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British online real estate agency, Purplebricks, has recently sent out a warning to investors that its foreign activities aren't going the way the company originally planned, though when it comes to Purplebricks' homebase, they're still doing fine.

However, the agency also admits that UK chief executive Lee Wainwright is quitting the firm after two years “for personal reasons.”

The UK operation will now be led by Vic Darvey who joined the firm only last month.

An unscheduled statement to shareholders and the City says that it remains strong in the UK despite the challenging market - it expects to maintain a 75 per cent share of the online sector and expects to report a revenue increase of up to 20 per cent more than a year ago.

But there are problems overseas - it warns its shareholders that revenue from its Australian and US expansion “will not be sufficient to meet expectations for this financial year.” 

In Australia, where Purplebricks launched a new PR campaign only last month, the agency had to change its charging structure to ensure vendors pay only a proportion upfront with the rest of the fixed fee payable when a sale completes.

In the US, Purplebricks has ditched its country-wide flat fee structure and instead varies charges by location and offers a payment option for when a property is sold, rather than upfront - more in line with traditional operators in the US real estate sector.

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February 24, 2019

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