Purplebricks shares are down 40%

February 25, 2019

British online real estate agent, Purplebricks has announced that both the UK and US heads are leaving the company after second downgrade

The shares of UK’s largest online estate agent, Purplebricks, have plunged 40% after the company slashed its revenue forecasts and announced the surprise departure of both its US and UK bosses.

The company blamed slower than expected growth in its fledgling US business and “headwinds” in Australia, as it said revenue for the year was unlikely to exceed £140m compared with an earlier forecast of up to £175m.

The revenue prediction had already been downgraded once, at the time of its disappointing half-year results, from £185m.

Last year’s revenues were £93.7m, which yielded an operating loss of £19.6m. The combined £45m downgrade to this year’s full-year sales forecasts is significant given that Australia and the US, the two divisions it said were struggling, only reported revenues of £12.5m combined in the first half of the year.

Shares dropped by 40% after the news but later staged a partial recovery. However they were still down 28%, at 118p, cutting the company’s market value by £140m.

PurpleBricks is an online real estate agent that helps its clients to sell, buy, and let their properties.

PurpleBricks provides a full estate agency service at a low cost because they've removed the expensive offices and fleets of cars that you see with traditional agents. Their one-off fee is payable when you instruct us but you can defer it for up to 10 months when you use their conveyancing service or until your property sells, whichever is sooner.

Read more here

Join us in Bangkok the 19th to the 21st of March for the Property Portal Watch Conference.

899

February 25, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Cooperrocketacq
Rocket to Acquire Mr Cooper Mortgage Service for $9.4 Billion

Rocket Companies has announced a $9.4 billion all-share deal to acquire Mr. Cooper, the largest mortgage servicer in the United...

Read More
Scout24 German Houses 1
Scout24 Closes Another Data-Focused Acquisition

Germany-based marketplace operator Scout24 has continued its expansion into real estate data with the acquisition of Austrian proptech firm ImmoUnited....

Read More
People Roundup 28Mar 2
People Roundup: Aviv Group, Pisos.com, Kleinanzeigen, REA India, Anjuke

There have been several high profile C-suite moves in this week's People Roundup. We'll start in Europe...   Europe: Aviv...

Read More
Product Update 2025Mar28 3
Product and Services Roundup: Zoopla, ViewIt

This week's Product Roundup starts in the UK, where it's all about Zoopla...   UK: Zoopla's MyHome product is used...

Read More

Editor's Pick