Purplebricks’ activist investor Lecram Holdings has warned shareholders can’t afford to wait ‘while the business runs out of money’ in a damning indictment of the beleaguered online agent’s half-year results.
A trading update from Purplebricks yesterday showed it has fallen deeper into the red, with adjusted earnings before income, taxes depreciation and amortisation at £8.4m for the six months to the end of October 2022.
It is reported compliance issues and said it could face claims of up to £5m from tenants for lettings failures.
Lecram Holdings, which has a 5.16% stake in the business, issued a strongly worded statement yesterday warning that nothing is improving.
It said: “Purplebricks’ figures – showing higher operating losses and the company burning £2m of cash per month - confirm our worst fears that nothing is improving. We are entering one of the worst housing market conditions in a generation, yet the leadership seems to have an overly optimistic view of prospects.
“Shareholders can’t afford to wait any longer while this business runs out of money, they need to act and act quickly to change the chairman if there is any hope of salvaging value for all investors.”
The clash comes ahead of a general meeting called by Lecram Holdings next week on removing chairman Paul Pindar and replacing him with industry stalwart Harry Hill.
Purplebricks' share price hit a low of 9.1p yesterday before closing at 9.26p.
.jpg){kind=avatar}
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
.png)
.png)
.png)
%20(002).png)
%20(002).jpg)
Join the conversation
Jump to latest comment and add your reply
Harry Hill - yeah I love that guy - he can do it I am sure: in between his comedy shows.
The comedian Harry Hill would probably do a better job than the current top brass, which is quite a damning indictment.
Nice one Rob :)
Please login to comment