Shares in Purplebricks have jumped in value by 12.6% over the past eight days and by 5% alone today during brisk trading of its stock.
The sudden turnaround in fortunes for its share price follows a four-month slump since it peaked in May at £4.10p, dropping to a low of £2.22 last week, a reduction of 45%.
Investors in Purplebricks have been cheered by buoyant results for its UK operation within its annual report released yesterday and its entry into the Florida property market the day before.
This included a doubling of its group revenue and a bullish statement that it would take more than 10% of the UK sales market in the ‘medium term’. It has also increased the number of Local Property Experts in the UK from 440 last year to 630 now.
Executives at German media giant Axel Springer will be heartened by the share price improvement.
It recently sunk £125 million into the company via a share buy-up scheme and, following further share acquisitions, now owns 12.5% of the hybrid estate agency.
The reduction in Purplebricks’ share price means the company had at one point last week had lost £43 million on paper.
“We are confident that Purplebricks’ market leadership will continue, given the strength of its brand, the continuing investment into team, technology and processes and our £153m war chest for global growth, following the strategic investment by Axel Springer,” says Michel Bruce, its Group Chief Executive (left).