Shares in Purplebricks slumped on the stock market yesterday after it delivered its preliminary half-year results.
They finished 9% or 36p down, at 361p, according to the London Stock Exchange.
This was despite chief executive Michael Bruce saying that the results showed “a great first half” with “strong trading”.
In the UK, he said the firm was continuing its growth, with expansion in Australia on track and the launch into the US in September “ahead of schedule”.
Its results for the six months to the end of October show UK revenues of nearly £40m, with the forecast for full-year revenue upgraded to £84m. Its Australian business brought in £6.8m and its USA business £100,000.
Purplebricks reported a rise in UK EBITDA (profits after costs and depreciation have been stripped out) to £4.7m, and an operating profit of £3.2m.
However, investors yesterday appeared far more concerned at group pre-tax losses of £8.2m, up from £2.8m the year before, despite group revenue soaring 150% to £46.8m, up from £18.7m in the same period last year.
While the shares fall could be due to a slowdown in the UK housing market, there has also been talk on investor websites about Purplebricks’ prospects in the US.
One contributor said that Purplebricks could join the long list of British companies that have tried to make it in the States and failed. High-profile firms which have tried to crack the American market include Tesco and Marks & Spencer, while in the property world, both Foxtons and Fine & Country have tried to establish themselves in the States.
Purplebricks itself said it had been a “bold decision” to enter the American marketplace.
However, there was speculation that Purplebricks sounded less than confident and may have bitten off more than it can chew when it said it continued “to believe there is a substantial opportunity” in the American market.
There has also been considerable speculation over Purplebricks’ biggest investor, fund manager Neil Woodford.
He holds 28.31% of the company (according to the Financial Times), with Purplebricks being the third biggest holding in his beleaguered Patient Capital Trust which has been looking at Purplebricks as its star investment.
Yahoo Finance yesterday put together this chart showing the marked differences between Purplebricks’ revenue and actual earnings.
Welcome to The Hall of Mirrors that is Purplebricks
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PIE share ticker is back.
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If you say you are going to take double-digit market share within a few years but don’t.
If you say you are going to make massive profits for investors within a few years and don’t.
If you say you sell 88% of all you list but don’t and, if you promise you are going to save consumers large amounts of money and don’t (and get hauled up by the ASA and BBC for misleading consumers into the process….)
You are going to continue to be a newsworthy story.
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If You say that you will have 150% year on year growth.
If you say you will launch in Australia and USA.
If you say you will be the UK largest estate agency.
If you say you save thousands from high fees.
Then yes they are newsworthy of high praise.
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Yes but Dom Purplebricks arent doing all of this.
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And if you endlessly promote the myth that selling houses for the best price is easy so just pay a discounted upfront fee, you are guilty of conning the public on a massive scale.
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Yet shaun that is FALSE.
Online agents achieve a HIGHER percentage of asking price than the average high street agent.
So please be careful on these unevidenced slurs.
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Do want to know how that’s done? (you won’t but the decent people in the readership might)
A property listed for £120,000 receives an offer of £99,000, the property is price amended to £100,000 then the agent claims to achieve 99% of asking price.
This was taken to ASA who now insist the agent adds the caveat (of last advertised price).
Get it past the various passive intermediary internet listing firms’ media teams and lawyers and I’ll happily arrange for over 10Gb of screenshot evidence to be put on public display.
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Precisely correct Mr May.
I now have a vision of the dom sticking his fingers in his ears, squeezing shut his eyes, and going ‘lalalalalala, I’m not listening’.
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Mr May is always promising various dynamite evidence, yet we have failed to see any of the kind.
Perhaps working with Mr Codling the results are not what was expected and thus less inclined to be placed in the public domain?
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When I do evidence findings you don’t like it!
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Dom
I’m not saying it’s impossible but, on the assumed completion levels, it’s simply improbable meaning that the majority of people are conned into paying for something they never actually receive.
It’s a con trick. Simple as that.
If PB truly believe in their model they should adopt the same approach with their LPE’s and pay them for attending a valuation regardless of whether the vendor instructs them.
They don’t because they know that selling is a results business and yet they continue to brainwash the public it isn’t.
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You poor deluded man. I would love to see proof of this. It’s amazing how this cult has hold of you. Or, moreover, the shares you own.
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That’s @dom by the way.
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There we go you poor deluded man :).
Perhaps research before posting may be advisable.
Source
https://www.moneywise.co.uk/news/2017-06-01/online-agents-outperform-average-%E2%80%93-not-top-%E2%80%93-high-street-rivals
The consumer group analysed data from 10 leading online agents – including PurpleBricks, eMoov and YOPA – and found that online agents achieve 95.85% of the original asking price versus a national average of 95.69% from high street agents.
That’s @quags or whatever his trolling name is.
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https://www.moneywise.co.uk/news/2017-06-01/online-agents-outperform-average-%E2%80%93-not-top-%E2%80%93-high-street-rivals
And we all know this is a load of Baloney as it depends on your marketing price used.
We sell most of our properties above asking price…so 100% plus…. because we use very detailed and accurate assessments to get the marketing price as close as possible to local buyer expectation.
Any survey of this type is not in the least scientific and there is no baseline control mechanism….and I say this as a former scientist. Every measure is a variable…not least the ‘Marketing Price’.
The marketing prices could on average be lower for the Call Centre Listers, as buyers more motivated to sell, through paying up front, may be more realistic….and bang….there is your statististical nonsensical evidence.
Of course the assumptions in the last paragraph may be right or wrong…no one knows , because they have not been measured or controlled.
Like I said, full of variables and a load on ststistical nonsensical Baloney!!!
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Trolling name? Disagreeing with someone does not make them a troll. Although in your world it does.
And as already mentioned, it’s easy to manipulate those figures. I’d like to see that research amended to the last advertised price.
What is harder for PB to manipulate is the amount genuine, real, qualified and accreditted Estate Agent proffessionals who have a vested financial and reputable interest in serving their clients to achieve the best price.
And not take a £1,000+ 54% gamble that it might sell.
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dom-boy
From your “source”
“Britain’s online estate agents are starting to outperform many of their high street rivals, according to research by the HomeOwners Alliance (HOA).”
That would be the same “source” that noisily feeds off every flake of skin that The Quirkster sheds their way;
The same “source” who have a clearly mapped history of total disrespect for our profession in general (but I would suggest tolerates the ‘online’ model due to its’ cheapness);
The very same “source” who spout such utter b0ll0cks in their summaries in “Compare Online Estate Agents” as
“You are put in touch with a “LocalProperty Expert” (who is National Association of Estate Agent trained) to value your house and takes photos etc…”;
The same “source” who on their website state that the eMoov “Pay Later” package is available at £795 when, in fact, it is SEVEN HUNDRED POUNDS more than that…
And the very same “source” who use the following ridiculously flawed methodology to make their claims look and sound convincing:
“The final sold price (as recorded at HM Land Registry) as a percentage of the initial asking price averages for a sample of properties found advertised by this agent on websites during the last 180 days”
You really want to change your “source”, pal. The current one is letting you – and every other sap that swallows its’ biased billshuttery – down BIIIIIG STYLE.
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Chris Wood – this was written about you on another forum less than half an hour ago – the poster has yet to come on here today as yet (though they were very active yesterday):
‘I wouldn’t trust much he writes about as he gets a lot wrong and I lost interest half way through reading that one.Currently under investigation himself by the Advertising Standards Agency for making misleading statements. Comes across as a bit of a jobsworth, dwelling on trivia and historical matters, interpreting everything in a way to suit his own agenda or just the most strict interpretation. Many laws are unclear but he is absolutely certain that his interpretation is correct, if you know what I mean. I feel he’s out of his depth most of the time.I’m sure I read somewhere that PB are in ongoing talks with the regulators so I presume on the whole the regulator is happy.’
Interestingly this share forum has now started quoting this website and individual poster’s content in full.
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Pretty spot on with that statement!
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For under investigation, read, I have received a complaint which has been responded to.
As for everything else, people will choose what they wish to believe. Having checked the evidence and drawn on my experience, I tend to believe I am right until I am proved I am wrong or the evidence changes. Haters will always hate.
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From another forum. Pretty spot on with that staement dompritch134
Another ringing endorsement in response to the earlier post by Shaun 77PropertyGirl2074 DECEMBER 13, 2017 AT 15:11I worked for PB as an LPE and in my opinion you’re accurate in our summary of an LPE/TO role. It is a shame culture where you pushed to see things all purple and the sad thing is, watching your people being brainwashed in to a purple cult.
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Used to work with him in agency many years ago – impossible !!
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Property Pundit
Interestingly this share forum has now started quoting this website and individual poster’s content in full.
Good job I don’t post all that I hear from being based in the town of their head office then!!! That certainly would have an affect on the share price, and I would get the blame.
BSOS23PC
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Which forum please Property Pundit
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Here you go:
http://www.lse.co.uk/ShareChat.asp?ShareTicker=PURP&share=purplebricks
You can spot our little friend a mile away.
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Thank you PP.
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Dom
Why are you here ? You don’t seem to accept the integrity of the site accusing posters of duplicity .Yesterday on Twitter you were making accusations that the very illuminating .well written post by Shaun 77’s interview with a Bricks territory owner was complete heresay and couldn’t be verified or believed ?
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Hillofwad71 as you sit behind your annoymous account i draw you to my tweet, I have no idea who Shaun is and have no evidence that his so called interview is factually correct or ever happened.
‘Yet there is no evidence they are or have been employees, it’s a comment section in a industry news site inundated with anti PB sentiment. But hey it’s on the internet it must be true #getagrip‘
Also I have a question WHY ARE YOU HERE?
Surely moaning and ******** about a rival is hardly productive, maybe concentrate on your own business and you may find some happiness in the future?
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Hi Dom
I can assure you my post yesterday was legit but accept it can’t be verified.
I suppose you could say the same about some of PB’s Trustpilot reviews but it doesn’t stop them promoting them as gospel.
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Clearly it could be but of course would be a bit of a spoiler for the territory owner’s career prospects if still at Bricks !
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Well I am sure Ros and the team know who he is? .They police this site thoroughly and you can rest assured that hey will do their utmost to ensure false statements are removed forthwith .
I am here as I am actively enaged in the property industry.Are You This is by far the best and informative site well run site and I trust its integrity
That doesn’t seem to be the case for you
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Ok for transparency here Hillofwad, which agency do you own or work for?
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Purplelbricks
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Brilliant!
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Dom Pritch really is pb best customer…. your are such a nice person to defend a company you dont even get paid by…wow what a decent chap. bless you and your bank balance.
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Wonder if he’s got an invitation to the Xmas do on Saturday?
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They have no LPE or TO called Tom in Aberystwyth, so i doubt that.
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Well Dom “Local” in Bricks parlance is not as you know it . The wild west coast of Wales is maybe where I am domiciled but the streets of Poplar are my patch Working hard on getting the instructions for the residential element of the Chrisp Street market development and the iconic Balfron Tower
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Turnover = vanity
Profit = sanity
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And a Bently for your efforts. The profit has already been taken by the brummies. Just depends how long woodford can hold his nerve now. I d want out quick seeing as they have used every ‘marketing’ and fake trick in the book and still only got a real 5% market share in the towns they operate in. #niche
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The more you talk about Purplebricks, whether it be bad or good, the more they will benefit.
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Not according to their stock price 😉
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from 75p to £3.61 in 2 years?
OK Chris….. you keep trying to bring them down!
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Savage stop being logical you are missing the narrative here.
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Let me correct you JustPlainSavage04, from 75p to 514.50 to 352.25 in 2 years.
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Thats the point though sav..no one is talking about purplebricks in the real world. (Which PB must hate) We just vent on here as it seems our amazing country of fairness and hard work is a complete lie. We just stumble into 1 issue at a time in this country with no logic. #tenantfees #brexit #fake online claims #ASA zzzzz #Dom doesnt work for PB he is just a good guy…with a lot of time on his hands.
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I Brucey bonus this Christmas
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The similarities to the rise and fall of Lastminute.com become increasingly apparent. Investors do eventually realise that it’s all about ‘left over rather than turnover’
The model and/or those similar to it, have a place however; only based on the profit it can create and that’s not going to be sufficient to sustain the share price even at today’s level going forward I suspect.
Get out now and buy back at the right price I’d suggest.
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OK time to pile in and buy PB shares as they are clearly looking cheap !
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I’m being ironic !
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Wow fiesta posts. Come on guys what happened to Christmas Spirit??
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However, investors yesterday appeared far more concerned at group pre-tax losses of £8.2m, up from £2.8m the year before, despite group revenue soaring 150% to £46.8m, up from £18.7m in the same period last year.
So the gravy train feeders are starting to take their heads out of the sand. Has anyone actually done the numbers on their listings for £46.8m? As the business model is based on pay regardless of results …. not a traditional estate agent and the norm to sell your property in the UK for decades. For them to continue to claim they are the same …. is misleading and is it any wonder that traditional agents who PB hammer day in day out with there marketing & Bruce comments, fight back.
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I’m not sure all posters realise that PurpleBricks could pack up in Australia and the USA and they would be a profitable company with current volumes of listings.
If they withdrew from the USA the share price would drop but the share price to the business is on the whole irrelevant unless they want to raise more capital.
The Australia side of the business looks like it’s growing pretty well after a year and 7 weeks trading.
The company clearly want to make a go of it in the USA and good luck to them. £100k turnover from what looks like 37 LPEs in about 5 weeks is not good and it’s not bad either. Too early to judge.
If PurpleBricks realise it’s not going to work out over there then hopefully they make a prompt decision and preserve some of that £50m they’ve been provided with by institutional investors to give it a try. No big deal unless you’re a share holder speculating on the success or otherwise and that’s what you get (and are warned about) when you invest in companies like PurpleBricks so you can’t complain.
The only other people who it would matter to if PurpleBricks failed in the USA are those hoping a UK company can make a success of things over there. Then of course there will be those people holding a grudge who will be ecstatic if they fail.
For the UK they have raised end of year forecasts. Not good news for those hoping they’re going to fail over here too.
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Not hoping they will fail. Just trade honestly, lawfully and fairly.
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Garbage…if/when they pull from the US, this makes tatters out of any future “forecast” “prediction” or chance of investors going near them again. Millions will be lost from the City and the press will have a field day. PB will be left with no future investors, limited funds for UK TV advertisement and a whole load of cost to cover. Slip, slip, slide away…..
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paulnewsboy26,
Sorry you’re wrong. Investors don’t pay for advertising in the UK.
The UK business is making a profit with current levels of customers after paying advertising and other costs. Take a look at their accounts. UK revenue for the six months reported £39.9m, after costs associated with revenue = £22.5M, Admin expenses = £9.3m, Marketing expenses = £10.1m. Profit = £3.2m.
The only losses are in the USA and OZ which are both years behind the UK in terms of progression. PurpleBricks hope to replicate what they’ve done in the UK and have the funds to give it a go but if it doesn’t work they are still left with the UK business.
Sorry to dissapoint you.
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£3.2m is pitiful after so long and still no dividend to investors, the only people who are keeping the sinking shop afloat and now waking up.
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Down a further 3.5% today, US market very uncertain and various US agents beginning their attack (as expected) again the PB 5+ “reviews”, EBITDA figures finally being recognised for what they really are, slowing UK market, consumer reality taking hold over actual costs for service v result v choice of no sale no fee, potential changes in revenue channels from legal and mortgage service, LPE’s facing revised commercials “downwards”, ongoing review site “issues”….one upside, they have the market share of Online Agents (but they claim they are “real” agents?????)……the futures bright, the futures “orange”….definitely not purple.
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The headline put out is impressive, revenues jump 150% Amazing! This is a group figure, so is slightly more difficult to pin down as it includes International and lettings and the bolt on services. The market is waking up to how difficult it is to judge the actual success, as losses are mounting and of course they are tackling very diverse and geographically spread out markets, whilst trying to challenge the markets conceptions. Novel idea, no one has thought of a call centre business before 🙂 Those who are defensive of the Purplepeople say that no other agent discloses the success ratio, which is true, but forget that as a disruptor and in theory charging up front for all services, the customers are entitled to know how likely their investment will get the result. PB are lucky that a lot of the property they visit have decided they will sell and the are seen as offering the cheap way to success getting on the internet as that is where houses are sold (!!), so getting the instruction. They have to prove that success and that is why the analysts are starting to question. They had no idea what they were looking at originally as all other stock market listed companies were traditional models, based on charge after success. The share price was based on cash flow, profit, pipeline and hope value. It was a master stroke to get Woodford Fund on board, but that was timing, as he had just set up his new funds and was enjoying a lot of hype too as the Wunderkid of investments. His investment accelerated the investors awareness though and it was clever of the founders to have a FTSE 100 executive on board; he knew how to lure the market and for those who don’t know, his name is Paul Pindar.
Don’t get me wrong, they have made huge steps forward, they and others have ensured that fees have fallen across the whole market and that will continue to damage many traditional agents and onliners. They have brand recognition, but at a P/E ratio of nearly 400, this is fantasy territory if the profits don’t appear properly and soon. Their share price will fall and it will plummet if Woodford unbundles, but he knows that is mutually assured destruction as his Patient Capital fund is doing badly..needs much more patience. He has lost a lot on another investment called RM2 and Purple is masking that.
Remember, although this will be gobbledy gook to non investor types, this company is still on AIM, which is start up and high risk territory. They have proved themselves, but not their value and the jury is out as to whether the expansion is too ambitious and costly and ends up taking them down. They are the most visible and successful of the UK call centres though. The note from broker Jefferies yesterday summed it up ‘Once again we find that PB continues to speak in riddles- ‘we sold and completed on £4.6bn of property with a further £3.8bn in the pipeline. However we cannot tell how many homes that equates to. And that is the one thing potential customers should be asking : If I pay you more than £1,000 what are the chances that you sell my home…’
It is material in a no sale no fee model!! And on that bomb shell PIE people, I suggest you go out and be the best version of yourself.
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Absolutely brilliant and factually accurate comment P-Daddy and one that encapsulates everything anyone needs to know.
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Probably the best post ever on this forum about this company. Tell me where P-Daddy is wrong someone.
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On the nail!
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>the jury is out as to whether the expansion is too ambitious and costly and ends up taking them down.
I’d be interested in P-Daddy elaborating on this point. P-Daddy, in what circumstances do you see this being a problem?
I’d also be interested in P-Daddy’s opinion of what will happen if the share price drops.
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Good post – may I add my tuppenceworth? I think that PB will consolidate at the bottom end of the market – first-time-seller/first-time buyer – where chains are not a major issue and where the lack of experience/sophistication of their potential clients will win instructions. If they attempt to move upmarket there will be trouble ahead (that is almost certainly the reason for expanding overseas rather than in their home market).
Conclusion: good conventional agencies will thrive – the bad will lose out to PB.
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The part I don’t understand in all of it is why diversify into different parts of the world before you have even got your own base in total order…..solidly delivering sustainable profits?
The cynic in me thinks it is all part of the hype to inflate expectation and increase the share price far more than it would otherwise be. In my opinion the model is fatally floored and many people know it. I perhaps have a better understanding of why that is so….for very good reasons. Wasn’t it originally intended to not have any representatives (so called LPE’s) on the ground at all?
Ultimately I don’t believe it will be the expansion abroad that will begin to crack the mold…., it will be the foundation basics of good long term business everywhere….or lack of it….client service!
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Read all about the South Sea Bubble of 1720 http://www.historic-uk.com/HistoryUK/HistoryofEngland/South-Sea-Bubble/ very interesting, it could even be today!!
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Quite agree Yorkshire Agent The truth is that markets are made up by people, their frailties and ego’s and this has not changed over time. We are a herd after all and this is why hype can be effective and logic gets parked very quickly in the pursuit of wealth. South Sea Bubble, Dutch Tulip mania and even now parallels with Bitcoin.
Here’s a thought, when everyone thinks they’ve got the answers think of the following ‘”What is happening to our young people? They disrespect their elders, they disobey their parents. They ignore the law. They riot in the streets inflamed with wild notions. Their morals are decaying. What is to become of them?” Sounds like the front page of the Daily Mail :-)…this quote is attributed to Plato 2,400 years ago..give or take!
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Cyberduck a quick question for you…do I really need to spell it out for you as we are talking about fundamentals? I tell you why I ask; you post on investors bulletin boards and therefore I would like to believe you have a grasp, or are you just trying to be contrary?
Lets start with ROCE shall we…or enduring profit that will fund expansion and continue to maintain £$10’s million of tv and radio advertising in the early years, as the business plan is not done organically, it is through aggressive start up as a disruptor. The business has to be pushed in a prolonged fashion, the market is fickle and property is not like selling widgets, when people buy, they buy for the long term, so repeat business takes years to achieve. There is a novelty value on the back of a boom market until recently, the market perceives it is easy to sell, all you have to do is put it on the internet. In a tough market they will have to get the sales through.
What if the share price falls…investors get hurt and people fall out of love with a company. It affects the ability to raise further funds and working capital….and that is just to start with. What happens when senior management start selling up…oops that’s already happened.
Do I need to flag up P/E ratio to you? I know you understand how important that is,Purp it is nearly 400, this is what you said about Telford Homes since you started posting in January 2017
I hope I have gone some way to answering your questions:-
Steph,I’d be interested in any long term data on p/e ratios.As a newcomer to the sector I was shocked when I saw companies growing earnings at over 20% a year on p/e’s of less than 10.I then took a quick look at Bellway going back to 1996 and quickly put some figures together so they may include the odd mistake. I saw that their p/e ratio from 1996 to 2007 averaged about 5 and in this period earnings growth averaged 20%.Between 2011 and 2016 the p/e ratio has been on average about 10 and eps growth on average around 50%.This of course raises the question whether the sector (or BWY anyway) requires massive growth of earning to sustain a p/e of 10.
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P-Daddy. That is the ducky neatly plucked, drawn, and served up a l’orange. Well done.
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P-Daddy,
I asked so you could explain to others. They seemed impressed with your post so would listen to you. I think most of them think I’m in love with PurpleBricks so hearing the same thing as I’m saying from somebody they’ve already hailed as the best post might help.
I don’t think you answered my question.
>the jury is out as to whether the expansion is too ambitious and costly and ends up taking them down.
In what circumstances do you see this being a problem?
>What if the share price falls…investors get hurt and people fall out of love with a company. It affects the ability to raise further funds and working capital
OK, that’s right. So given this scenario do you agree that provided the UK side of the company is making a profit, the fact that it will have trouble raising funds is not necessarily an issue that means the business will fail and stop competing with traditional agents here in the UK? That is provided they withdraw from any regions that aren’t making a profit and would need future additional external funding?
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@Cyberduck…What is it with you and purplebricks? Are they paying you? Are you mates with someone who works there? Possibly an over-protective father of a son who finally got a job in a suit? Come on, what is it?
Purplebricks isn’t a really like a proper estate agent, its a firm that sticks property on the property portals for £1000 (plus extras) as such it offers no usp over Emoov who’ll do the same job for £500 quid. If a house seller wants a cheap deal to list a property and do all the work themselves why would they pay £500 more than using Emoov? The person looking to sell their own home as cheaply as possible doesn’t have to pay more and now firms like Emoov are offering a no sale no fee service surely the Purplebricks offering is not as good value as Emoov’s £500 deal.
Emoov have a massive price advantage over Purplebricks plus Russell Quirk does get far more positive column cm’s than Bruce bros.
If there’s a genuine need for a get around the ‘agent only’ rule on Rightmove surely firms like Emoov will find favour with the price conscious public?
I like Emoov; Russell Quirk makes me laugh how he keeps tapping people up for cash to somehow not undercut his main rival who do the same thing yet manages to get £500 more for doing it. (Why do people do that?) Mind you these traditional agents are missing a trick; they could literally assassinate Purplebricks in 3 months by recommending Emoov to anyone wanting a to pay to list and nothing more service. Take away the foot soldiers doing the listing and that’s it!
Emoov, like Purplebricks but cheaper, we’ll list your house for less, seriously why pay more?
I know the advert says more than £500 but it doesn’t harm to ask! Nudge, nudge, wink, wink!!
plus see www home owners alliance for an extra 10% voucher
To you….
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>Are they paying you? Are you mates with someone who works there? Possibly an over-protective father of a son who finally got a job in a suit?
Sorry Walker_McCoy41, I don’t have time to respond other than to say ‘no’ to your questions. I have answered this type of question before though so search back and you’ll see.
As for the other online agents I don’t know much about them so can’t comment.
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I’ve been watching your posts for awhile so don’t need to do a search but I don’t think a normal person would carry on with their posting after they’ve moved without good reason (usually cash?). Pity you didn’t do a search when choosing an agent to sell your home. Emoov (for example) sell everything in 3 months for about half the price Purplebricks charge.
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Walker_McCoy (with/without the ’41’ suffix)
I believe that Mr Jury’s role of Chief Marketing Minion has been filled – at least for the present time – which means that either you are ‘it’ and using every possible space between words to plug your company, or you’re using this opportunity to publicly pitch for the next crack at it.
I note that product placement is your bag. I also acknowledge the slightly under-subtle use of product comparison which our friends from t’other side of the pond seem to relish.
Is this the start of it, I wonder? Is it time for Da Brentwood Massiv to crawl out from under the piddling stone they’ve shrunk to fit and stand up to the PurpleBoys that have p!$$ed all over your firework for the last three years?
Just don’t expect them to slink under the pebble you’ve vacated.
Is this gonna be the kicking-off of the Call-Centre Fight of the Century? The bl00dy scrap for the bigger bit of the little bit of the huge market?
What can we call it, I wonder?
We’ve already had ‘The Rumble in the Jungle’… You’ve lost out on ‘The Thriller in Manilla’ as well…
So will this be forever known as ‘Handbags at Sandbach’? Or what about ‘6!tch-slapping in Wapping’?
I’m at ringside – popcorn in lap. I knew it would get used one day.
I know it’s a waste of time saying this to both contestants – but let’s have a fair match – KEEP IT CLEAN.
Ding, ding… ROUND ONE.
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What do you mean product placement, Ok I mentioned Emoov do the same job as Purplebrick but for £500 less (£550 with the voucher on HOA) but as we’re all agents here it’s hardly likely to win Emoov any business from this audience is it? Where’s the harm?
Suggesting agents ought possibly to see Emoov as a friend, a solution to the purple plague is a charitable gesture. If you’re going to miss out on an instruction to the future of agency you might as well do someone a favour and there is no-one more deserving than Russell.
Think about it,if the instruction is lost you lot might as well lose it to someone who’s really cheap. It’s no skin off your nose but you’ll undercut the vulnerable and barely established hatchlings as they struggle through their first few years as self employed, commission only, listing negotiators.
I know its been sold as a “be your own boss” concept but anyone can see that ain’t the way it is.
(I dropped the 41, it made me sound old)
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Too funny! If Quirky’s latest injection of cash has bought him a minion of that quality fair play to him.
Instead of a damn good Peebeeing (credit me) here is the Victoria Stillwell dog whisperer of the decade getting the ankle gnawing Peebee to lay down, roll over and show him/her/prefer not to say (credit you) his belly with the most outrageously blatant “come and get it here” first post on Eye ever.
Here’s the thing Peebee, while a playground scrap, Solihul/Sa’fend tug of love would be a joy to watch, even if the industry did get behind Quirky to challenge his and your main rival what you do with him when its all over. Its the old nuclear waste dilemma, yeah its cheap electric but the spent fuel is a real pain to deal with. Perhaps there could be peace and harmony and everyone just gets along.
I admit this is a genius strategy under cut the under cutter but there is no reason agents can’t offer a passive intermediary service, at a price that undercuts the under-cutter’s under-cutter.
“Before I provide you with any advice on value let me ask if you are considering using an online listing service? If you are I can’t give you my professional opinion on price, that would make me an estate agent not what is known as a passive intermediary. Someone who just helps you put your home on the portals but who isn’t covered by the fiduciary obligations of proper agency; duty of care, recourse if it all goes wrong etc. Part of that is I can’t give you advice.
Typically professional passive intermediaries (the ones that look like estate agents) charge from £500 upwards to put your property on the internet, you’ll probably pay for viewings as an extra and will probably have to use their in house conveyancer at a cost that’s higher than (insert local converyancer).
If you want to try that service with an option to upgrade to the full estate agency service we’ll credit you the money you pay up front to list. Give us £300, I’ll do a measure up right now, grab some photos, we’ll whack it on the internet at your price and we’ll see what happens in the next two weeks. That’s our standard cooling off period so we’ve got nothing to lose, You could save £Fowsands as the adverts go and if a buyer doesn’t come along we can do the job properly after that. You have to be fully aware I won’t do anything else in those two weeks but that is standard for that particular type of agency service, waddaya reckon? give it a go?”
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Robert
Maybe it’s been a long week; maybe I’m coming down with something other than Purple Fever – but I’m trying to figure where in my post I offered the new kid on the block my tum for a tickling?
‘Walker_McCoy’ (with or without) is clearly on bonus – either to ramp up the SEO rating for eWassname (the bottom mandible of its’ brave and fearless leader seeming to have been clamped shut of late…) or to increase their listings numbers – having temporarily axed their #permasale, I note that they’re back to offering freebies in an attempt to sway the public’s judgement over the red line but I doubt that will set anyone’s pulse racing and compel them to sign on any dotted digital line.
Of their 149 properties “added” in the last 30 days I’m seeing familiar pictures… green trees… roses in full bloom – you know the sort of thing I mean.
The first “Just added” one I checked – which just happens to be up my general neck of the woods – was down as being listed yesterday on Zoopla and Rightmove – but pops up in a Best Price Guide search as having been previously listed for 51 weeks before being archived in August. Funnily enough, it has been listed at around £5k more than the previous attempt – but we all know what to expect there…
The next “Just added” I checked – according to Rightmove has been on the market since June.
The next was apparently listed in August for a nine-day period then archived. It was re-listed yesterday – a complete new listing.
The next – listed less than a week ago at a price £15k less than when it was archived in August…
…and on it goes.
But that 149 in a month is pretty much what their Purple nemesis humps up onto the portals on a daily basis (or, if you work out the numbers based on their trading update figures, it’s around three quarters of a day’s takings…) – so matey-boy/girl/they has got a monumental task ahead of him/her/theyself of duelling banlos with the Brucey Brothers anytime soon.
You’ve gotta admire the ‘nads of the person, though. Clearly got the measure of the dom’n’ducky Diabolic Duo and will knock them into a cocked hat without giving it a second thought.
Hmmm… maybe we should embrace this new poster, after all – at least for now…
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cyberduck
The answer to your question which on face value is odd in the extreme is that a net conclusion on over expansion, costs, logistical nightmares trans Atlantic and down under and little intrinsic value other than goodwill attached to the name/domain…which would not be the £100’s millions the market value is at the moment. They don’t own freeholds and have few tangible assets, it is a call centre and hub business with self employed lpe’s and an income stream at a current disclosed level. It is an emperors new clothes biz..lots of promise but without the outcome that a committed management would want to see…a legacy where it lasts into the future and this would not be the case if it goes down. If this is an exit strategy based biz, that would be a horror to the currrent management and investors, they will have got used to these values and think they are billionaires although lets be frank, they are millionaires. The brothers have sold out before and so did Paul Pindar to fund his divorce when he was at Capita…he wants money to replace it with…human nature. The bigger the zeros..the bigger the egos!!
In your second question/scenario the first item you have overlooked is that if they can’t make the International side pay, you have to get the major shareholders and market to buy into the closing/scrapping of USA/AUS. Credibility issue for a new biz. If you get agreement to a major re structure and the UK biz does become stand alone, that prevents the biz from ending up as a zero sum game and in theory could survive. But with the rush to move overseas, that will create a lot of flack proved by the fact that they have already faced criticism after the initial euphoria. The Board will not be popular and reduces the business to fundamentals again. What is a fair price for a call centre, a website, HQ staff, domain name and a reduced turnover of lets say on today’s numbers of £39.9m and profits before everything of £3.2m. Try and justify that with a current market cap of £965m…impossible. Apply a sensible PE ratio with a bit of hope value and it gives a better idea.
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>The answer to your question which on face value is odd in the extreme is that a net conclusion on over expansion
Are you aware that they raised £50m specifically for rolling out their offering in the USA? So would you not agree that provided they don’t expend more than £50m then they are not over expanding? Or are you referring to management time being overstretched?
>If you get agreement to a major re structure and the UK biz does become stand alone, that prevents the biz from ending up as a zero sum game and in theory could survive.
Good, then we agree. I think some people who post on here are under the impression that a falling share price or failure in the USA will affect the UK business.
>In your second question/scenario the first item you have overlooked is that if they can’t make the International side pay, you have to get the major shareholders and market to buy into the closing/scrapping of USA/AUS.
Well of course shareholders would have to approve any major changes but nobody with any sense would continue with a business that isn’t working.
Again this makes me think you are unaware of the specific fundraising for expansion into the USA. I could be wrong but I think the £50m was to be spent over 2 years. Approved by a vote of shareholders on 13th March 2017.
I can see you want to discuss valuation but valuation doesn’t interest me. I’m not going to disagree with you and if I’ve ever mentioned valuation on this website then it would have been to say the valuation is crazy. I’m pretty sure I said as much on the lse forum when I sold my shares back in May. Go and check if you want.
Of more interest, I think, to people here is the future of the UK business. So, if the market believes the company is overvalued then the share price will drop and as you say it would be more difficult to raise finance. But we’ve already agreed the UK business can carry on without finance so valuation is pretty irrelevant as far as the UK goes (as long as it’s making a profit)
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But can it? Purplebricks have a contract to advertise a property until it’s sold. IF for whatever reason the sausage machine stops churning the cash to pay for the adverts dries up.
The listers who are applying for jobs with other agencies are saying when the adverts don’t run the number of instructions fall and that worries them. So much for the grass being greener! Funny how none of them ever post how much they love their jobs or defend their firm like traditional agents do.
Investors can be real bar stewards when it comes time for them to get their cash out. It can be really hard to get fresh funding. As this sector gets more understood, the promised returns and market share predictions flop they are becoming harder to convince.
You only have to look at the big names who’ve got burned to know this is an industry that is burning cash and sheep (credit one of Bruce bros) investors’ cash faster than a picket-line fire to have a real respect for Russell Quirk who is the only real magnet for fresh investor cash. Personally I think he should float and show the AIM what proper sector disruption is all about.
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Sorry, Walker_McCoy – but I personally doubt The Quirfster could successfully float a polystyrene box filled with helium on a frozen pond.
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PB haven’t revolutionised selling property and estate agency. All they have done is charge cheaper with less service, less out outlet, charge if they do not sell and not provide any returns to their investors. Talk as much as you like, but they are not a success.
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Has anybody logged into Purple Bricks and made offers to the sellers WITHOUT viewing the property?
Give it a go it’s very interesting what responses you get from the DIY seller, poor clients have been misled.
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You’ve lost me. I am trying to work out the odds of finding another poster on Eye besides you who has offered on a property by a single agent but who hasn’t viewed the property.
I started with 55,000:65,000,000 then got as far as 0.000846 of 0.008125 and then realised it’s probably only you who has done it as not many people buy without viewing (about 1:166m)
So what happens?
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Hi Robert.
Sorry, the point I was trying to make was that the PB systems allows you to make an offer without you having to view the property.
The owners actually get into negotiations with you without saying if you want to view the property.
I have registered as I am testing their systems for floors and research.
It would be interesting to know if my unvetted offers goes towards their overall stats.
Hope that clarifies the statement Robert.
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More share options being exercised today by PB top bods.
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