Purplebricks faces an imminent takeover bid following the collapse of its share price, predicts a leading industry analyst.
Andrew Stanton has already claimed that some £481m had been spent in operation costs for Purplebricks since 2015 while it generated £363m in revenue over the same period.
After taking into account £187m raised from investors the firm lost £117m he says - although Purplebricks itself has disputed those figures.
Some of Stanton’s claims were subsequently used by the Daily Telegraph in a story about £18m in upfront fees paid to Purplebricks by owners whose homes it failed to sell.
Now - with the Purplebricks share price barely above 50p following the Coronavirus impact on the stock market - Stanton has returned to the issue.
On LinkedIn over the weekend he wrote: “The share price of Purplebricks which had been £107p for some time, is at this moment trading at 53p, following the Telegraph story. Given that the opening price for shares was 95.5p in December 2015, I feel that in a matter of days either [existing major shareholder] Axel Springer will take control of the enterprise or there will be a hostile bid. Watch this space.”
And on Twitter, Stanton added: “It’s taken five years, but now the game of purple smoke and mirrors has run its course. 22,000 unhappy vendors in 2019, and keeping £18m of fee money from those vendors who failed to sell. And how can reviews be so positive?”