Purplebricks is now the largest agent in the UK by listings on Rightmove, broker Zeus Capital has said.
The claim has been made by Zeus Capital research director Robin Savage.
Savage also said that Purplebricks’ growth has been “at the cost of its competitors who are not terribly happy”.
He said that next spring Purplebricks will take more share of the market, and in the UK will make EBITDA profits of £15m during the current financial year, rising to £30m next year and £45m the year after that.
Savage said that the customer experience of Purplebricks has been overwhelmingly positive.
He said: “There made be the odd detractor who has difficulty selling their home for particular reasons – but there are considerably more happy customers than there are unhappy ones”.
Zeus Capital is broker to Purplebricks and advised it on its successful stock market launch. Zeus Capital is also advising OnTheMarket on its own IPO.
An interview with Savage can be heard here: https://www.directorstalkinterviews.com/interview-purplebricks-group-plc-interesting-time-investors/412737330
Meanwhile, easyProperty has said that its own diminishing stock on Rightmove is due to the fact that these are legacy properties being handled centrally and not by its licensees. But yesterday easyProperty boss Jon Cooke admitted that he does not know what the firm’s current national inventory actually is. See next story.
Comments (37)
How long will it be before Purple Bricks makes the leap and leaves rightmove and just uses its own portal. rightmove is effectively allowing purple bricks a free ride. As the market changes and there is a reduction in high street offices, rightmove will get another reduction in income. The market is changing and Purple Bricks stands to do best out of it as their (fee) is payable regardless of a sale.
I have a cunning plan, it is very likely a little bit questionable (morally/legally speaking)
If every traditional estate agent in the UK offered a 2 tier commission structure that goes a bit like this:
You find the buyer, the vendor shows the buyer around and progresses the sale for £799
or charge your normal fee for traditional agency service.
Now technically this gives the vendor the choice of spending more with PB or using their local agent for a little less unless they prefer the full service.
Give it 6 months and PB and others will be up against the wall.
Erm, how many of PB’s listings on Rightmove are like this one I wonder?
Only 2 photos and an incomplete address.
Is this a phantom ad or just incompetence, as surely no client would ever consider this remotely acceptable?
http://www.rightmove.co.uk/property-for-sale/property-69024521.html
(down the bottom for our flouncing feathered friend )
The information was posted where Eye’s reply system allowed it. I am guessing your rose tinted glasses make anything not purple invisible. The reply was there in ample time for you to reply
Fantastic news, what an amazing 12 months it has been for this progressive and brave company.
Well done all the LPE s and the management team.
Progressive? Not convinced….yet Brave? You’re having a laugh!
Dr Zeus comments…
Dear Pimplefarts,
You haven’t sold my home, yet I have already paid you over £1000?
What happens next?
Dear Customer,
We recommend that you instruct a real Estate Agent to sell your home.
Goodbye.
Ah Yes… Zeus Capital comments…
No bias at all.
I look forward to their Purplebricks & OnTheMarket updates, juggling those positive words & stats.
It reminds me of someone who owns a racehorse, looking to sell it… that tells anyone who will listen what a great horse it is…. in the hope of inflating the price… then one of those listening to glowing reports happens to notice the horse under discussion has 3 legs!
It’s great, it’s fantastic, it’s a Winner! ….Oops, it just fell over!
Tell me Zeus… what makes the World go round?
Clever marketing + reviews. They’ve learned the lesson from the successful hotel chains. Just take a look at what they have done: got great reviews and scores and then driven up their rates – simple really.
No bias here then?????
Can someone tell me why their local property experts are allowed to carry out valuations?
Are they qualified surveyors or can I (not a qualified surveyor) now offer valuations too?
Estate Agents don’t perform valuations, we perform Market Appraisals for listing. The valuation is carried out by a Surveyor, so in truth yes anybody can value a house, but whether they do it successfully is another thing altogether!
that’s what I thought, yet they advertise their service as valuation, even though it is clearly a market appraisal.
I was told not to offer a valuation service (when doing a market appraisal) in the early 2000’s and have never referred to it since.
Sounds more like someone who knows how to tell a good story on behalf of someone who pays them, but has no reality with life.
But is PB one business or a collective of many small businesses?
“but there are considerably more happy customers than there are unhappy ones”
that’s because their customers have nowhere to go now to voice their unhappyness!
>He said that next spring Purplebricks will take more share of the market, and will make EBITDA profits of £15m during the current financial year, rising to £30m next year and £45m the year after that.
What he actually said was the UK division would make these profits.
06:30
They say we’re young and we don’t know
We won’t find out until we grow
Well I don’t know if all that’s true
‘Cause you got me, and baby I got you
“Purplebricks.com, in telling its would-be investors that it was anticipating enormous profits, says that following a loss this year of just over £1.5m, forecast a net profit of £17.6 in the year to July 31, 2015, and £24.9m profit the year after”
Its a Gimmick –
what other performance figures are they showing? zilch, nothing.
A common misconception is that EBITDA represents cash earnings. EBITDA is a good metric to evaluate profitability but not cash flow. EBITDA also leaves out the cash required to fund working capital and the replacement of old equipment, which can be significant. Consequently, EBITDA is often used as an accounting gimmick to dress up a company’s earnings. When using this metric, it is key that investors also focus on other performance measures to make sure the company is not trying to hide something with EBITDA.
http://www.investopedia.com/terms/e/ebitda.asp#ixzz4uWcGTd6B