Purplebricks Up For Sale Amid Mounting Losses and In-Fighting

The bad news is piling up for Purplebricks, with share prices plunging to a new low as the beleaguered online agency announced it was putting itself up for sale.

Shares fell 21% in one day to a record low of 7.86p while also admitting expected losses for the year will hit between £15m and £20m, potentially more than double the expected £8.8m and £11.3m. For reference, the company floated at 95p in December and peaked at 525p in 2017.

Meanwhile, Lecram holdings Limited, owner of a 5.16% stake in Purplebricks, has once again called for the head of current chairman Paul Pindar—a repeat of November's callout—with industry veteran Harry Hill the preferred replacement.

Pindar received the backing of 71% of shareholders at a general meeting in December 2022, but a 29% of investors voted for his removal after Lecram Holdings called a General Meeting to vote on a boardroom shake-up.

Purplebricks said that an ‘offer period’ has now commenced, but it is not, however, in talks with any potential offerer and is not in receipt of any approach with regard to a possible offer.

Purplebricks' most recent trading update outlines that the company is undergoing a strategic review including streamlining its lettings business and more conservative investment in the ramp up of the mortgages business.

Helena Marston, CEO, said:

“We have undertaken a huge amount of work in the last 9 months to improve our sales business, raise standards, establish Purplebricks Financial Services, and stabilise lettings, all of which means the Company has never been in better shape for the future.

Yes, the actions we have taken have caused more short-term disruption to our Q3 performance than anticipated, but we remain confident in returning to positive cash generation in early FY24.

We recognise that our upside potential is not currently reflected in our market valuation, which is why the entire Board has therefore concluded that a strategic review is now in the best interests of all shareholders.”

Purplebricks was founded by Kenny and Michael Bruce, who also launched the now-bust Boomin.