Though some bien pensants like Neil Woodford and top share blogger Paul Scott insisted that Purplebricks (PURP) was a long-term disruptor of the word of Estate Agencies. The reality was that it was a piss poor way to sell houses and a company that could only survive in a fizzingly hot housing market. Well guess what?
As predicted on this fine website, AIM-listed Purplebricks Group (PURP)'s interims to October 2021 are suitably disastrous. But since the company isn’t bust (yet) the market has reacted with relief and the shares are marginally up on the day, at 20.3p – though a long way shy of the 50-60p they were at only last autumn, and a country mile off the £5 at peak Neil Woodford-ramp back in 2017. The opening preamble tries to polish the turd, but a peek at the formal accounts shows that it lost £20.2 million in just six months. During a housing boom where anything standing sold within hours and average prices roofed it as mortgages were almost free to a good home. Yikes – just how bad might it have been in a slump?!
What is a process issue when it is at home? It seems that Purplebricks (PURP) has discovered one in its lettings business which apparently has been going on for years. It refers to tenants and the deposits they must leave with landlords. The company says that “the communications process is now being corrected.” It also says that there is a financial risk.
When I read Purplebricks (PURP) CEO Vic Darvey prattling on about a solid platform to achieve longer term targets my mind immediately switches to thoughts of Cheryl Cole. I feel that I too offer an increasingly solid platform (boom boom) and I have my targets too. Whatever ... today Vic served up a ghastly profits warning and shares in Purplebricks (PURP) are in freefall. You cannot say that this site has not warned you all often enough. So what’s the story morning glory?
