I wonder that this minnow can be worth £2/share on the AIM market?
There's no Yield [DYOR] and the sp has spiked twice (up from below 80p in 2016.).
Maybe this suggests MMs are pushing; rather than retail investors?
- Esp. as this is the first Topic created, I'm guessing few have bought into this alternative Estate Agency . . . . . certainly there is attraction for the House-seller who sees Estate-Agent Fees are a personal Tax . . . and with modest houses that "Fee" can buy you a small car/Kitchen . . . yet few of us think EAs actually do much when so many House-Hunters will go "On-Line" initially - and folks don't get Wet / Lost looking for name-boards.
(( PURP's are a modest Purple; easy to spot, yet not untidy FWIW.)).
Downside......I see no reason why an established Estate Agent can't mirror ( as "ANOther"), whilst retaining their existing Business-Model . . . this would reduce the available Sales to PB, while allowing BigEA to develop throughout the Country by associates joining.... I will presume PBs local-expertise is retired/disgruntled ex-staff from local Estate Agents, throughout the land.

I am reluctant to break my "Rule" that AIM-stocks must be under 50p (unless there is a history of massive dividends.).
Any views?

PURP on a roll.

Bought only a few at £2 to attend AGM's and receive literature and BANG! =the sp rises due to expansion in Australia and US [DYOR].... now 270p.... Despite about 8% Dilution due to a Placing ~220p
EDIT-(10April2017)- some pull-back but at 290, it's still looking good.
EDIT(26April2017)- reading "2016/17 Dir-Sells" isn't too hopeful . . . I wonder if they were giving themselves these shares - ie prior to floatation on the Market?

Very dodgy organisation... now 410p

A lettings director at Purplebricks sold shares worth nearly £300,000 less than a week before a damning BBC report on the online estate agency was broadcast.

Richard Jacques cashed in 60,000 shares worth £288,775 in two tranches in the last week of July.

On 2 August, the BBC broadcast a documentary showing Purplebricks’ promotional material included claims about saving customers more than £4,100 – despite being banned from making that claim by the Advertising Standards Authority last year.

Purplebricks apologised subsequently and immediately removed references to savings figures.

The Aim-listed estate agency’s shares fell seven per cent after the revelations were made.

In March eight shareholders including co-founder Kenny Bruce sold 7.9m shares worth £23.8m as part of a fundraising.

In a statement, Purplebricks told the Sunday Times: “Richard [Jacques] was not made aware of the BBC feature before the shares were traded. He is not a member of the board [and] is involved in lettings only.”

Purplebricks accused of making 'exaggerated' and 'misleading' claims about how much it can save its customers


BBC 1 Watchdog investigators discovered that the online agent was boasting a saving which had been previously ruled as unsubstantiated.

Online estate agent Purplebricks has come under fire for making ‘exaggerated’ claims in its promotional material following an investigation by the BBC.

BBC Radio 4 programme You and Yours said the agent were continuing to repeat claims that customers could save vendors £4,158 if they used Purplebricks as opposed to a high street agent, which the advertising standards agency had previously ruled as misleading.

The revelations, which also featured last night on BBC 1 Watchdog, sent Purplebricks’ share prices tumbling by 7 per cent.

Despite the claim being banned by the ASA, the BBC found that the group had been repeating it in promotional emails.

The online agent has since issued a statement to the stock market, apologising for its ‘oversight’.

Purplebricks also faced allegations that it ‘sells loans not homes’, referring to its deferred payment option which required vendors to enter into an agreement with Close Brothers – an agreement that is not always made clear, according to Watchdog’s undercover investigators.

In three undercover cases, Purplebricks’ Local Property Expert failed to mention that the vendors would be entering into a credit agreement with a separate company if they went for the deferred payment option.

The same investigation found that LPEs were making exaggerating claims about the company’s sales figures to win business.

In response, Purplebricks co-founder Michael Bruce said that the LPE who claimed to be listing up to 25 properties a month could have been referring to the number of listings made by himself and colleagues.

In a telephone interview with You and Yours presenter Winifred Robison, Bruce said that LPEs were ‘highly trained to be clear and transparent’.

He added that the £4,158 claim had been removed from “over 1,000 different places” after the ASA’s ruling.

In terms of the agreement entered into with Close Brothers, Bruce said all vendors were made well aware of this. Asked whether this was really a loan by another name, Bruce called it “an unregulated facility agreement”.

sharp reversal continues and has indeed accelerated today - as is fully deserved by this company of questionable practices

Purplebricks launches business in the US


Purplebricks announced that it is formally launching its business in the US today.

In line with the region by region rollout successfully adopted for entry in the UK and Australian markets, the US launch will commence in Los Angeles, before extending across the state of California and other targeted key states thereafter.

As the 6th largest economy in the world by GDP and the leading US state in terms of both number of annual real estate transactions (442,320, source: California Association of Realtors) and an estimated commission income of $12bn p.a, California is the natural launching point for US expansion.

Although California, at 12.6m households has less than half the UK equivalent, the level of commission income in California is more than double that of the UK.

The diversity and density of the Los Angeles population and broad spread of low to high price properties, will enable us to demonstrate the high quality of service across all demographics and the potential savings that customers can achieve.

The Purplebricks technology platform and customer offering has undergone a transformation to meet the intricacies of the US market, while staying true to the core customer proposition of value for money and high quality customer service. This is delivered through a combination of Local Real Estate Experts (LREEs) and technology.

Purplebricks has successfully adapted its technology and customer offering previously with its launch into Australia in 2016.

CEO Michael Bruce said: "Launching Purplebricks today in the US is the single biggest moment in the company's three-year history and a proud moment for me personally.

"It is testament to the quality and dedication of the team that we have achieved this ahead of schedule and expectations. We are excited about the opportunity, in this $70bn market, while mindful of the challenges.

"We have planned accordingly, adapting both our technology platform and customer proposition, while building out an infrastructure and local team, with decades of experience.

"As we rollout across California and beyond we will closely monitor progress and have the capability to further quickly and efficiently refine our model, if and where necessary.

"For the LREEs we recruit, Purplebricks presents an exciting new platform to build scalable, profitable businesses in their own dedicated regions, supported by our strong technology infrastructure and the benefits of our extensive TV and radio led marketing.

"I am very excited about the quality of the applicants keen to be part of our ambitious US growth plans. For sellers, we offer a more efficient and effective 24/7 service and the ability to save thousands of dollars. Buyers will benefit from access to our leading technology, best in class search functionality and a faster, more efficient service.

"Purplebricks is now in three continents in just over three years. We are confident that we are leading irreversible change in the industry and that we are best placed to realise the future global opportunity."

Purplebricks lays foundations for US launch

Online estate agent Purplebricks is to launch in the US as it looks to tempt Americans to desert traditional high street firms and tap a 70 billion US dollars (£52 billion) market.

The company will first set up shop in Los Angeles before extending across California, with other states also on the hit list. Boss Michael Bruce said the move represents the “single biggest moment in the company’s three-year history”.

“We are excited about the opportunity, in this 70 billion US dollars market, while mindful of the challenges. “We have planned accordingly, adapting both our technology platform and customer proposition, while building out an infrastructure and local team, with decades of experience,” he said.

Purplebricks described California as the “natural launching point”, with an estimated commission income of 12 billion US dollars (£9 billion) per year, more than double that of the UK. The firm claims that, using the average LA house price of 560,000 US dollars, Purplebricks could save sellers as much as 16,400 US dollars – based on a seller’s commission of 6% and assuming a Purplebricks’ buyers commission of 2.5%.

Similar to the UK and Australia, where Purplebricks currently operates, buyers will be able to arrange showings, submit offers in real time and negotiate sales on properties with the click of a button. In June, the firm posted a 151% increase in revenue to £46.7 million in the year to April after it sold and completed on more than £5.8 billion worth of UK property on its platform.

This meant that full year losses halved from £11.9 million to £6 million.

Purplebricks launches business in the US


Purplebricks announced that it is formally launching its business in the US today.

In line with the region by region rollout successfully adopted for entry in the UK and Australian markets, the US launch will commence in Los Angeles, before extending across the state of California and other targeted key states thereafter.

As the 6th largest economy in the world by GDP and the leading US state in terms of both number of annual real estate transactions (442,320, source: California Association of Realtors) and an estimated commission income of $12bn p.a, California is the natural launching point for US expansion.

Although California, at 12.6m households has less than half the UK equivalent, the level of commission income in California is more than double that of the UK.

The diversity and density of the Los Angeles population and broad spread of low to high price properties, will enable us to demonstrate the high quality of service across all demographics and the potential savings that customers can achieve.

The Purplebricks technology platform and customer offering has undergone a transformation to meet the intricacies of the US market, while staying true to the core customer proposition of value for money and high quality customer service. This is delivered through a combination of Local Real Estate Experts (LREEs) and technology.

Purplebricks has successfully adapted its technology and customer offering previously with its launch into Australia in 2016.

CEO Michael Bruce said: "Launching Purplebricks today in the US is the single biggest moment in the company's three-year history and a proud moment for me personally.

"It is testament to the quality and dedication of the team that we have achieved this ahead of schedule and expectations. We are excited about the opportunity, in this $70bn market, while mindful of the challenges.

"We have planned accordingly, adapting both our technology platform and customer proposition, while building out an infrastructure and local team, with decades of experience.

"As we rollout across California and beyond we will closely monitor progress and have the capability to further quickly and efficiently refine our model, if and where necessary.

"For the LREEs we recruit, Purplebricks presents an exciting new platform to build scalable, profitable businesses in their own dedicated regions, supported by our strong technology infrastructure and the benefits of our extensive TV and radio led marketing.

"I am very excited about the quality of the applicants keen to be part of our ambitious US growth plans. For sellers, we offer a more efficient and effective 24/7 service and the ability to save thousands of dollars. Buyers will benefit from access to our leading technology, best in class search functionality and a faster, more efficient service.

"Purplebricks is now in three continents in just over three years. We are confident that we are leading irreversible change in the industry and that we are best placed to realise the future global opportunity."

and sp continues to plunge ...... such a shame :-))

I think a number of Dir-Sells doesn't help. (March"17-on). Whatever the reasons they don't want to keep their cash in the business.... so why should anyone believe they will benefit. Better to wait for this US-expansion to settle-in, before investing £ots. ( However, they missed the peak=£5 a few months later!)

IMHO the "Size" of the US Homes-Market has little to do with it; it depends only on how well PURP can service the Buyers/Sellers and they may find it quite different from the UK market. Of course they may do something like Uber - a disruptive gambit where US-Locals can grab some action . . . maybe this will appeal to College drop-outs who fancy a smart suit, etc.
EDIT (15Nov2017)- sp 293 - looks like those Directors know something?

A Purplebricks statement, quoted in the Sunday Times piece, says:

“It comes down to reputation and word of mouth. You need to earn a good reputation in the local market in order to build a sustainable business. ... If you’re a traditional agent you’re going to throw a bit of mud aren’t you? We’re giving people an alternative to the old costly structure of commission.”

It then adds: “It is no coincidence that since Purplebricks has been in existence the average commission rate charged by traditional agents looks to have reduced. More telling than their criticism is the fact that many are now trying to imitate our model.”

the ethics of this comnpany - the wording of their contract to be precise - leave a very nasty taste in the mouth

however, it hs been well telegraphed that there will be a big boost for building more houses in next week's budget ...... rather than adding further builders to my portfolio, i thought to look instead and both PURP and RMV ...... the former has outperformed significantly over the last ....... for all that, PURP is significantly below its peak

i was all set to place an order when i noticed the serious weakness in the order book and that sp has already fallen 4% this morning ....... is there a skeleton about to come out of the cupboard?

augurs well for the lttle treading position i opened a couple of days back ......

H1 Average Uk Income Per Instruction Up 14% To £1,138
Uk Revenue Guidance For Full Year Upgraded 5% From £80m To £84m
On-course To Achieve Full Year Revenue Guidance Of £12m In Australia
H1 Total Gross Profit 26.2 Million Pounds Versus 10.4 Million Pounds Year Ago
Uk Business Continues To Scale Up N H1, Reporting An Adjusted Ebitda Profit Of £4.7m (Fy17: £0.3m) And An Operating Profit Of £3.2m

An assessment of nine online agencies undertaken by a property website has seen Emoov come out on top after being analysed on a number of measures, with industry leader Purplebricks only coming seventh.

Website Propertyroad has undertaken analyses of nine agencies; although the ratings and assessments are inevitably to some extent subjective, Emoov was a clear winner with 9.4 out of 10.

RNS out in last hour.

Profit warning, £100m investment from Axel, partly new shares, partly directors flogging more of theirs at 360p

Purplebricks trails its announcement with the revelation that European digital publisher Axel Springer has agreed a strategic investment of £125m to help accelerate roll-out in the US, support expansion into new geographies and upgrade technology and services.

The bad news is a warning that revenue for the 12 months to 30 April is expected fall around 5% short of the consensus forecast of 98% thanks to a weak UK market. This explains why the shares are down 6.2% to 292p following the trading update.

Since we signalled our caution on the stock in June 2017 the shares managed another month or two of gains before enduring increasing volatility as analysts and the media questioned its success rate, the business model and its accounting.

Axel, which owns popular German tabloid Bild, is subscribing for £100m of new shares at 360p, a material premium to the market price. This offers something of a riposte to the criticisms levelled at the company.

This investment will result in Axel owning 11.5% of Purplebricks.

Purplebricks’ full year results will be published on 5 July.

i shorted this at end march, and it's taken this long and much patience to finally come right
the 1 year chart is very ugly indeed, but perhaps one of you chart whizzes can take a stab as to where there might be support

the cause of the recent collapse may be linked to the rns of 2 days ago which said nothing at all, from which it may be intimated that the trading update promised for 6/11 is unlikely to exciting at best

i shorted this at end march, and it's taken this long and much patience to finally come right
the 1 year chart is very ugly indeed, but perhaps one of you chart whizzes can take a stab as to where there might be support

the cause of the recent collapse may be linked to the rns of 2 days ago which said nothing at all, from which it may be intimated that the trading update promised for 6/11 is unlikely to exciting at best

Well done Cynic.

It's amazing how long things take to topple over sometimes. All that marketing hype around a different way of selling. Sooner or later it had to come home to roost.

when my son checked out the contract back in 2017, he found it was full of all sorts of weasel clauses
and of course the client pays one way or another

i see i posted as below a year ago .....
remains a total con as far as clients are concerned ..... their so-called "professional estate agents" are frequently nothing of the sort and the professional bodies - eg solicitors pay PURP up front ..... there is no incentive for PURP to facilitate let alone actually sell anything

and earlier i commented that i thought that if you ultimately completed your sale through another agent, there were penalties