« Back to all posts

Purplebricks shares soar after trading update showing 83% growth in instructions

Purplebricks shares shot up some 6% in value yesterday after its trading update.

They ended the day at around 342p, the closest yet to their record price in March of 365p.

In yesterday’s trading update, Purplebricks reported a strong performance with an 83% growth in instructions.

However, it did not report how many properties it has actually sold.

Separately, the firm has also told EYE that two different adverts used online essentially say the same thing despite their different wording – and refer to properties Sold Subject to Contract. Purplebricks told us that the claims are a “very conservative estimate”.

One says “We sell a house every 30 minutes” while the other says “A sale agreed every 30 minutes”.

The agent who saw the adverts was Andrew Overman, who yesterday said: “I saw the pay-per-click sponsored advertising on the search term for the company I work for.

“The claim was that Purplebricks sell a property every 30 minutes. That would equate to 17,520 legal completions in a 12-month period, which seemed high.

“I was also concerned that the claim should be able to be substantiated as they, to my knowledge, have never disclosed the volume of successful completions.

“The following morning the claim seemed to have been amended to ‘sale agreed’ and then a few days later, no statistics were mentioned at all. I did raise the issue directly with them on Twitter but have yet to receive a reply. I have yet to receive a reply to my email either.”

Yesterday, Purplebricks’ market capitalisation was £914.45m, compared with Countrywide’s £386m.

[ comments ]

Source:: Purplebricks shares soar after trading update showing 83% growth in instructions