Purplebricks under fire again despite new financial chief
Rebel investor Adam Smith and TV commentator Russell Quirk both call for major changes.
Purplebricks’ senior leadership team is under renewed pressure as investors and property experts join forces to attack the estate agency.
A new CFO was appointed last week with the incumbent Steve Long leaving just a year after taking up the role.
New CFO Dominique Highfield faces a daunting task ahead including turning the finances around after profit and revenue fell a quarter in the most recent trading update.
Activist investor Adam Smith, a 5% shareholder through his investment firm Lecram Holdings, issued this statement: “We are extremely surprised to see the CFO depart in under a year, without a clear explanation why.
“Under Paul Pindar’s stewardship, Purplebricks has gone through four CEOs and five CFOs, which is a factor in why it has underperformed so badly.
“How long are shareholders prepared to wait for the chairman to accept responsibility and step down so we can end this circus and stabilise the company?”
‘Stale’
Smith was joined by property guru and TV commentator Russell Quirk, (main picture) who called for Pindar to step down as chairman, saying he was “stale”.
Quirk tells The Neg that CEO Helena Marston (pictured) is inexperienced in the property sector, and Purplebricks needs people who are experts, especially if there is a market downturn.
“Purplebricks is a busted flush. I expected it to be refloated in the future as a different business,” he says.
He says the Purplebricks model of low income from each customer and high expenditure on marketing and operations, does not work.
Quirk doubts that the planned redundancies at Purplebricks will make much difference, with it continuing to struggle.
Helena I’m sure is a highly qualified HR director .I feel a bit for someone who has been wrongly elevated into a position that clearly is well beyond her skill set.Its easier to promote from within and whilst an ideal is not always he right answer.
they need a proper EA CEO or I’m not sure AS will want to see their cash pile run down in the next 3 months
Finally the chickens are coming home to roost. The misled investors are discovering the expensive way that the wheel can’t be reinvented. The Bruces got away with that one and will no doubt try & offload barmy Boomin before it suffers the same predicable fate!