Rebel investors in Purplebricks repeated their calls for Chairman Paul Pindar to step down after the company reported a big fall in profits.
Advisers to Adam Smith, who owns a 4.2% stake in the firm, told The Neg they would ‘take action’ to force the issue.
Purplebricks’ full-year results to 30th April 2022, were published yesterday, revealing a drop in profit of 27% to £42 million, and 23% in revenues to £70 million. Pindar (main picture) and his wife Sharon increased their holding in the firm to more than 14 million shares or 4.59% of the total on the day the results were issued.
CEO Helena Marston blamed a failed marketing plan and the housing market for the poor outcome.
Smith said in a letter to The Independent last month that a new direction was needed, and now Glenn Cooper, chairman of Harrier Capital, adviser to Smith’s investment vehicle Lecram Holdings, says: “We will be meeting the company later this month and will reiterate our call for a change of chairman, and our willingness to take action to bring about this change.
“The dreadful Purplebricks results show the extent of the challenge faced by the company.
“The leadership of Purplebricks has admitted to errors in its marketing, lettings, customer conversion, employment model and failed expansion into Germany, with the result that over £30m of shareholder funds were wasted in the last financial year.
“While we are encouraged by the plans of the new CEO and CFO to turn things around and stem the cash bleed, we wonder why it has taken so long to act and are concerned that the lack of market experience at board level, and the fact that the chairman who presided over this terrible performance is still at the helm on the company.”