Crunch time for Purplebricks is due to arrive on Thursday when, amid the hullabaloo of the General Election, the company reveals its interim results for the first half of its financial year ended 31st October.
The company has been accused of timing the results to coincide with both the Christmas wind-down and the day on which many City traders will be casting their votes; the decision was announced after the election date had been set.
Purplebricks has already said it hopes to announce an improvement in its marketing-to-revenue ratio following efficiency savings, and at the very minimum the maintenance of its 4% market share.
Investor grumbling will begin if the company’s market share dips below this; CEO Vic Darvey recently said he wants to see it increase to 10% in a bid to quell City worries over its recent exit from the US and Australia.
Russell Quirk (left), former CEO of the old eMoov and now PR guru, is sceptical that the results will ignite City interest in Purplebricks’ shares.
“Even with hugely increased marketing spend of late, listings have flatlined and market share has plateaued,” he has said.
“To all but treble listings when you’re all tapped out on marketing investment and brand awareness? No chance.”.
Purplebricks will also update investors on the costs and progress of its international withdrawal, and its much-touted attempts to increase average revenue per customer.
Its most recent full financial year results showed an annual increase of 6.4% in revenue per instruction to £1,243. At same time it costs the company £382 to acquire each instruction.