Purplebricks reported to be preparing to float

Sky News is claiming that Purplebricks is talking to investment banks about a possible stock market floatation and will shortly be hiring advisers to move the project forward.

Purplebricks was set up less than a year ago by brothers Michael and Kenny Bruce who ran Burchell Edwards in the Midlands. At the time of the start-up last spring Investment came from Paul Pindar, the former chief executive of outsourcing and business management firm Capita while Martin Bolland, Capita's non-executive chairman, also took a financial stake in the business.

In the summer it won backing from Neil Woodford, the former Invesco Perpetual fund manager, who set up his own asset management venture. He invested £7m in Purplebricks, saying the firm had "the vision, the technology and an experienced management team .... I see a significant opportunity for the business to lead the market in changing the way we buy and sell houses.

Sky claims there is now additional funding from Errol Damelin, the former boss of controversial payday lender Wonga.

In recent months Purplebrick has stepped up its public profile. It has hired Joby Russel as its director of online estate agency, a job he combines with that of marketing director at Confused.com.

Then just last month the company announced it was taking out customised' TV ads across a range of channels that will deliver specific advertising to viewers based on their postcode areas. The promotion is taking place this month via Sky Media's new AdSmart platform, with localised ads to Sky homes in Brighton, Guildford and Swindon.

Purplebricks recently launched in the West, South West, East Anglia and Welsh TV regions following its pilot work in the Meridian region and then Central England.

The company is declining to comment on the Sky claim that it is considering a floatation.