Purplebricks appoints Birmingham firm as auditor and adviser

SOLIHULL-based estate agency business, Purplebricks has appointed Grant Thornton in Birmingham as its auditor, tax and growth adviser.
 
Newly-floated on the Alternative Investment Market (AIM), Purplebricks combines traditional estate agency services with an advanced digital platform and a nationwide network of local property experts.

It began trading in April 2014, initially concentrating on building its presence in the south of England, but quickly rolled out operations across the country. Purplebricks’ share of its online market is estimated at 60%.
 
Grant Thornton partner David White leads the firm’s relationship with Purplebricks, with director Martin Ramsey and senior manager Natalie Gladwin working on the audit.
 
Grant Thornton’s first assignment was to help the directors to prepare for flotation, with Mark Taylor and Alex Hyde of the firm’s Transaction Advisory Services team in Birmingham leading the reporting accountant work.

The flotation, which completed in December, was the first of its kind in the UK and raised £25m gross proceeds for the company via a placing, valuing the company at £240m.

Purplebricks recently posted its interim results for the six months to October 31, 2015 which showed a seven-fold increase in revenues and gross profit up by over 800%.
 
Mr White said: “Purplebricks is a genuine disruptor to the traditional estate agency business model and experienced a period of rapid growth in its first 18 months. The directors were therefore looking for a team of advisers who could work alongside them and help take the business to the next level, with access to funding a vital component of that growth strategy.”
 
Neil Cartwright, Chief Financial Officer, Purplebricks, said the firm approached Grant Thornton after monitoring the work it had done on flotation of Birmingham-based Patisserie Valerie.