Purplebricks’ share price has slumped to its second lowest level ever, it has been revealed.

At 14.34p, Purplebricks is seeing confidence in its performance ebb away as the slide that started last year continues.

There was a brief boost as the effects of the Covid pandemic subsided, but this was only a temporary respite, and the company is struggling to turn things around.

Purplebricks released a trading update in May that revealed lower volumes of new instructions at a time when most agencies have been scrambling to cope with historically high transaction levels.

Instructions were down 31%, even though other agencies reported gains.

Purplebricks said its revenues were expected to be approximately £70 million for the full year, and Adjusted EBITDA was expected to be a loss of £8.8 million.

The cash balance at 30 April 2022 was £43.2 million, reflecting the lower instruction volumes and exceptional costs in line with guidance.

Faltering

Purplebricks has been faltering for some time now following several own-goal mistakes, including the £3.6 million cost of incorrectly handling deposits for several hundred tenancies, and a looming court battle over its employment contracts.

The company’s city advisor, Zeus, did come to the company’s defence, saying that: “New instructions in 2022 are down year-on-year…. this is consistent with RICS surveys which show extraordinary low levels of properties for sale and new instructions”, and praising its management for keeping losses to ‘a minimum’.

The company is due to publish its full-year results next week.