The Purplebricks share price dropped briefly to an all-time low of 89p yesterday after several national newspapers reported that the company is about to reveal increased losses.

Last year it revealed losses of £24 million but these are expected to double to over £50 million this year, the company is to warn investors.

But another rumoured announcement due today, that it is to withdraw from the US market, helped the company’s share price regain some ground yesterday, finishing at 93p a share.

Its US operation has burned through some £35 million as it has launched expensively in several different property markets, and new Purplebricks Group CEO Vic Darvey (pictured, top) is said to be keen to cut his losses rather than let the company carry on bleeding money in America, something that will reassure the City.

US withdrawal

Investors will not be surprised if Purplebricks does pull the plug on the US; in its most recent statement following the departure of founding CEO Michael Bruce the company revealed its frustrations that demand for its service in the US had not proved to be as strong as it hoped.

The company raised £50 million for the City to launch in the US during February 2017 and launched initially in California during June that year, later starting up other operations in and around New York as well as Nevada.

In February this year the company’s CEO in the states, Eric Eckhardt, quit the company two years after joining to help set up the operation there.