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Agencies & People

Purplebricks share price plummets AGAIN to historic low

Hybrid agency's stock drops by 25% over seven days and by nearly 13% alone yesterday.

Nigel Lewis

The Purplebricks share price has taken a hammering over the past week as investor jitters sent it plummeting by 26% prompted by bad news from Brexit, eMoov and its latest results.

Its share price began at £1.70p on Monday morning, dropping dramatically to £1.50p almost immediately and then yo-yoing down to £1.26p at one point before settling at £1.30p at close of play yesterday.

The dramatic price movements are in part down to the ongoing uncertainty around Brexit and news that its largest competitor eMoov had entered into administration, but also worse-than-expected figures from its latest six-month results.

As we reported yesterday, these revealed how its US and Australian operations have continued to lose money, dragging its group results in to the red despite increased revenue and profits in the UK.

Investors ignored a beefed-up management team at Purplebricks. The company revealed that online industry heavyweight Vic Darvey (left) will be joining as its group Chief Operating Officer in the New Year from MoneySupermarket.com.

Darvey has 20 years’ experience at comparison website including MoneySupermarket.com but also Lastminute.com and, during the late noughties, co-founded his own online travel company.

“Vic brings a proven record of technology delivery and leadership of cutting edge data-led, customer-focused, commercial innovation,” the company says.

Purplebricks revealed several other initiatives within its results including how it would be starting a new advertising campaign in the New Year including pitch sponsorship of all BBC televised rugby matches in Scotland. It is also to re-brand the English-speaking Canadian property website ComFree to Purplebricks,, which it bought in July.





December 14, 2018

One comment

  1. This is posted on behalf of another user, Andrew Stanton:

    “I think Purple Bricks and other pay upfront online agencies are going to come under increasing scrutiny as many vendors appear to be paying upfront and receiving nothing in return, and the figures appear to be very large.

    If you look very closely at this independent analysis commissioned by Purple Bricks by the data experts twentyci which cover the financial year 2017 to 2018 see below


    there seems to be some contradictory claims. In the twentyci report, and I quote

    Purple Bricks were looking for a reliable, respected and independent data source to establish answers to a set of questions about their performance in the financial year 17/18′

    And Purple Bricks are …

    ‘No1 at selling houses: 81% of listings sold within 12 months’

    Then there is a helpful graph in the same report which shows an annual picture of Purple Bricks results, it shows 64,000 new instructions, 48,000 properties sold subject to contract and it shows 38,000 properties exchanged.

    Now the ratio of exchanges to new instructions 64,000 to exchanges 38,000 is 59%, so Purple Bricks are not selling 81% of the instructions.

    But the worrying thing is, if the company gets 59% of vendors exchanged, it fails to get 41% sold or exchanged but still charges them on average £1,100 as an upfront non refundable fee, which is 41% of 64,000 vendors at £1,100 or 28.86M of fee for nothing.

    Readers of this are going to say the figures are wrong and skewed etc, but twentyci also did a similar report on Emoov and Tepilo, post the recent failure of these two online companies.

    And the WHICH organization recently had sight of this twentyci report and said that the conversion rate of the online pay upfront company was 53% of instructions to sold subject to contract, if you then discount the 53% by 30% the usual industry fall off for cancelled sales you get to an exchange rate of around 37%.

    See link below


    In this piece by WHICH, it is stated that

    ‘Major online estate agent Emoov, which also owns Tepilo, has gone into administration, potentially leaving thousands of home-sellers out of pocket by as much as £2,995. James Cowper Kreston, the firm appointed to act as administrators for Emoov, says the company currently has 5,000 properties listed for sale or sold subject to contract.

    Of this total, around 80% have paid upfront for the service and are at risk of losing money from the collapse.’

    Also, WHICH states,

    ‘Exclusive data provided to us by TwentyCi shows that over the past 365 days, Emoov had approximately 8,000 new instructions. The firm accounted for approximately 0.5% of the estate agency market in 2018.

    Around 53% of new instructions received by Emoov typically went on to be ‘sold subject to contract’ and the average price of a property listing was £375,000. Tepilo’s figures are rolled into this data as its activity is merged with Emoov.

    Now for a very long time I have been saying that online pay upfront agents should be telling potential clients the true conversion rate of their service, and I wrote a recent article using data from Rightmove on – Tuesday November 13 – (prior to the collapse of Emoov and Tepilo).

    It is roughly gives a market snapshot of the then six major online brands (two under the ownership of Emoov). These were the figures from Rightmove.

    Doorsteps – 2,054 properties listed, 1,321 for sale, 733 under offer not exchanged, 28% conversion of listed to sold subject to contract.(Minus 30% cancellation rate gives exchange rate.)

    Yopa – 5,501 properties listed, 3,539 for sale, 1,962 under offer not exchanged, 35% conversion rate.

    Purplebricks – 37,531 properties listed, 21,142 for sale, 16,389 under offer, 43% conversion rate.

    Emoov – 2,504 properties listed, 1,696 for sale, 808 under offer, 32% conversion rate.

    Tepilo (owned by Emoov) – 1,740 properties listed, 1,162 for sale, 587 under offer, 33% conversion rate.

    HouseSimple – 1,140 properties listed, 763 for sale, 341 under offer, 30% conversion rate.

    You will notice that Emoov and Tepilo, had a conversion rate around 32%, which if you take the 53% figure being instructions converted to sold subject to contract as in the twentyci report, and then say the normal fall through rate for the property industry of 30% between sold subject to contract and exchanged was slightly higher for these two brands, say a 35% fall through rate you get to the 32% exchange rate, reflected in the Rightmove figures which would mean 68% of vendors mostly paid upfront for nothing.

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