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Purplebricks tells City and investors "we're on course" for 2017 targets

Purplebricks has issued the briefest-of-brief statements to the City and the company's investors to assure them it is "on course".

The latest statement reads, in full:

"Purplebricks Group plc ('Purplebricks' or 'the Group'), the leading hybrid estate agency, confirms that following the closing of the first half of the financial year, it remains on course to meet the board's expectations for the full year. The Group's Interim Results will be released on December 13." 

Some eyebrows were raised in September when the agency issued a trading statement saying, in summary, that it had 640 Local Property Experts and that its revenue for the first half of 2017 was likely to be double that of the same period for 2016. However, to some observers' surprise, it made no reference to profits. 

The agency's share price hit its all-time high of over 514p in August this year but dropped sharply around the time of its appearance on the BBC Watchdog programme, which criticised several elements of its customer service and advertising. The agency also featured in several Advertising Standards Authority judgements in recent weeks - of the two key decisions, one went in its favour and one against.

After the release of the latest brief statement, however, Purplebricks' share price rallied to go well over the 400p mark.

The interim results scheduled for release in mid-December will include latest numbers of LPEs, listing volumes and profits. 

  • Kelvin Francis

    This is a continuation of 'surfing under the big wave'. Another attempt to keep the forward momentum. The significance of 'no mention of profits' is that there aren't any. If being 'on course' just means more of the same, then keep hoping and wishing. They are lucky that people only move every 7 years on average, because few of those will be coming back, but they do have friends and relatives, so time will tell.

  • Simon shinerock

    Analysts are not the Best judges on this subject, estate agency is simple but it’s not easy, until AI can outperform a great negotiator traditional middlemen will be worth their fees. Another way for me to make my point is like this. If you instructed every estate agent on your high st to sell your home you might pay 2% but only if you sell, if you don’t none of them get anything. Equally when you sell, the only only one who gets paid is the one who delivers the goods. The chances are that if you did this and were realistic about it your chances of selling would be close to 100%. Now imagine you were to instruct and pay upfront money to every internet agent, there are loads of them and the cost would be far greater than 2%, however, your chances of selling would barely have increased at all because none of them would in any way benefit from making a sale. So, the best way to look at PB is as a private sales option to be run alongside selling through an agent and then, only if you as an individual believe you have the ability confidence and skill to negotiate the highest price for yourself. But, remember this, buyers know that sellers are saving commission and they are very likely to make lower offers as a result, which means a lot of the time PB clients won’t be making any savings and the perceived lower cost will be a false economy. Put that in your pipe and smoke it

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