Purplebricks’ share price dropped yesterday to barely over 200p - its lowest level for some 18 months and reflecting a near 40 per cent drop over just the past six months.
Even analysts say, off the record, that it is difficult to give a specific single reason for the agency’s share price decline, which has accelerated in recent months.
There has been growing criticism of the agency’s refusal to give concrete completion figures on its sales but this began long before the current share price decline; likewise the high profile TV consumer investigations into the agency do not coincide with the trend.
Many of the stories concerning complaints about the agency to the Advertising Standards Authority also pre-date the share slump.
Meanwhile the agency’s own buoyant attitude has continued in recent months, despite its stock market performance.
Over the summer Purplebricks co-founder Michael Bruce said traditional agents sold only around 50 per cent of the homes they listed so spend half of their income from commissions underwriting the costs of the home owners who fail to sell.
Just a fortnight ago Purplebricks’ annual report claimed that 81 per cent of its listings were sold within 12 months, in the year to April - although sold, in this case, meant completed, exchanged or sold subject to contract - and at the same time the company announced a further expansion of its US business.
Purplebricks’ share price closed last evening at 208.0p.