Purplebricks set for crunch AGM amid investor activist concerns

Purplebricks is set for its annual general meeting amid shareholder pressure over its performance and position of its chairman.

The beleaguered online agent is pressing ahead with the meeting in London despite the capital focused on preparations for the Queen’s funeral next week.

The AGM is taking place at the offices of Norton Rose Fulbright LLP, at 3 More London Riverside, London, which is on the other side of London so unlikely to get caught up in the crowds of well-wishers and mourners around Buckingham Palace. 

It comes after an activist investor upped its stake and called for the online agent’s chairman to resign in July.

Adam Smith has been building up his holding in Purplebricks to 5%, the point at which he could call a general meeting on urgent matters affecting the business.

Smith and his investment vehicle Lecram Holdings have a 4.18% stake in Purplebricks.
 

Smith has also written to Purplebricks chairman Paul Pindar to urge him to resign amid the company’s tumbling share price and cash burn, claiming action is need to “restore the credibly of the company with investors.”

The letter called for Pindar to be replaced by someone with “necessary experience and skills to address urgently the company’s continuing cash burn and operating performance with thin residential estate agency sector.”

Pindar has also been increasing his stake.

Investors may also have questions over Purplebricks’ financial performance after it reported a decline in revenues and profits for 2021 last month.