Purplebricks power struggle showdown – shareholders to decide
Motions to replace chairman Paul Pindar and replace him with veteran Harry Hill will be voted on at a general meeting, it has been announced.
The showdown between rebel Purplebricks shareholder Adam Smith and chairman Paul Pindar (main picture) is set to take place in front of shareholders.
A vote on whether Pindar should stand down will be held at a general meeting on 19 December.
Smith has put forward veteran Rightmove founder and former Countrywide chairman Harry Hill as an alternative chairman.
As an investor with a 5% share in the agency through his company Lecram Holdings, Smith has the right to call a general meeting.
In a letter to shareholders, Smith describes Purplebricks’ performance as “disastrous”, and says: “A track record of multiple failures and poor governance demands that a change of chairman is required NOW in order to create value for all shareholders.”
Chairman refused
Smith says he has asked Pindar to stand down many times, but despite the company’s share price falling to a new low, the chairman has refused.
Many changes of CEO and CFO during Pindar’s reign have also prompted Smith to call for change.
Last month it was announced CFO Steve Long was leaving after less than year in post to be replaced by Dominique Highfield.
The Board unanimously recommends that you VOTE AGAINST both resolutions.”
In a statement to the Stock Exchange Purplebricks told investors: “The Board unanimously recommends that you VOTE AGAINST both resolutions.
“The Company believes it has the support of a number of shareholders, notably including Axel Springer, a 26.5% shareholder in the company, which has provided an irrevocable undertaking to vote against both resolutions.”
Purplebricks reported a drop of 23% in revenues down to £70 million, and a profit fall of 27% to 42.1 million in August. The struggling agency also suffered an EBITDA loss of £8.8 million.
I would have thought Harry Hill would be able to add the much-needed Estate Agency experience to this model which is so much needed. Whether it is too late for anyone to be able to turn the ship is the big question and a far harder reduced size of market won’t help.GL to all involved.