Purplebricks’ shares crash after warning on revenues

Purplebricks shares have been in decline since July 2017

Shares in Purplebricks crashed 35% when the stock market opened on Thursday morning, wiping more than £150m off the company’s value.

The share price briefly dropped below 100p, which was the price it floated at in December 2015, before recovering some ground to close at 125p.

The online estate agent had earlier revealed its international businesses were underperforming, causing the group to reduce its revenue guidance by £35m and now expects it to be between £130m-£140m.

Thursday’s slump continued an 18-month decline in the group’s share price. In July 2017 the company had a market value of £1.5bn, but was valued at £380m at the close.

The largest shareholders in Purplebricks are Woodford Investment Management, which has 27%, Axel Springer with 12.5%, and co-founder Michael Bruce, who owns 11%.

Bruce is to take over the day-to-day running of the group’s American business. Its US chief executive Eric Eckardt is leaving after two years after the division missed its revenue targets.

Purplebricks’ Australian operation has also failed to hit its revenue targets.

Read more: Revenue targets scaled back as international problems hit Purplebricks

Click here to sign up to receive our new South West business news...
Close