The pressure on Paul Pindar (main picture) to quit as Chairman of Purplebricks is growing after analysts said it could be the only way to revive the ailing online estate agency.

Purplebricks’ profits plunged 27% this year to £42 million this year and while Pindar’s increasing investment in the firm – he now owns over 5% of the company – could be seen as a positive investors are becoming wary.

David Reynolds, an equity analyst at Davy Research, told The Neg, “As the UK residential market slows into the coming recession Purplebricks will need to contend with a less benign market.

“To regain investor confidence, we believe three things need to happen. First, a return to market share growth; secondly, a change of Chair and the third, evidence of effective cash preservation.”

The UK residential market is more than challenging. Coupled with UK inflation expected to hit 18% in early 2023 according to latest forecast US financial services group Citi, the world of online estate agency is only going to get tougher.

ACTION PLAN

Reynolds adds: “Purplebricks needs a recovery plan to return to instruction growth and deliver positive cashflow in 2024. Cash preservation is clearly key here.

Purplebricks needs a recovery plan to return to instruction growth and deliver positive cashflow.”

“The five-year chart for the Purplebricks price is a sobering read at -95%. Investor confidence is shot.

“Being Chair is a tough job and it hasn’t gone well at Purplebricks. Change is required.

“Rebuilding the business model at the same time as preserving cash is quite some ‘ask’ in a housing market that is likely to become more competitive for estate agents; even more so, investors will need to see progress visible in the financials.”