Hybrid estate agents can take significant market share within the next five years, the boss of Purplebricks has said.
Speaking to the Sunday Telegraph, Vic Darvey said: “We believe the hybrid market place can get to 20%-30% [market share] in the next five years and they [Springer] believe in that.”
German-based global publisher Axel Springer is the largest shareholder in Purplebricks.
Last week, Neil Woodford’s fund reduced its holding to less then 5%, with its shares being taken up by supervisory company Link Fund Solutions as the entire Woodford business winds down.
Darvey also told the Telegraph – which described Purplebricks as “the struggling estate agent” – as “absolutely” not for sale.
As a public company, Purplebricks is owned by its shareholders and as such, is not for sale. However, it could be taken private if a similar scenario emerged to that by which US equity firm Silver Lake came forward to buy Zoopla and convinced shareholders of the attractiveness of the idea.
However, Darvey told the Telegraph that Purplebricks wants to retain its stock market listing.
If a shareholder increases its stake to 30% or above, it is required to launch a mandatory takeover bid for the entire company – ie, buy the remaining shares – within 30 days of that threshold being crossed. Axel Springer, Europe’s biggest publisher, currently has a 27% stake in Purplebricks.
The very short report – five paragraphs – in yesterday’s Telegraph also said that Darvey defended the company’s fixed-fee pricing model. Earlier, Darvey had suggested that this would be reviewed, with other online firms – for example Yopa – offering no sale, no fee as an option.
However, insiders suggest that a no sale, no fee model is a difficult departure for online agents needing to make future projections for fund-raising purposes, because while some of that income might materialise, much of it might not.
Comments (27)
Vic is doing the right thing for himself. extracting as much money for himself out of a nearly dead horse, keeps putting stories out to keep investors “interested and hopeful” and then he will l be gone.
He won’t be the loser – not him or Neil Woodford
Newsflash
The Quirkster has just blocked me – AGAIN – on Twitter.
The reason? This thorny and, to him, clearly uberembarrassing subject of calling the wrong numbers in the wrong order.
I’m adding that achievement to my CV.
The Quirkster has blocked me too today – Mr I never said it would be as high as 50% – hohoho oh yes you did in 2015 , 2016 ???
Newsflash
Failing DIY website says things can only get better…………
“…Vic Darvey said: “We believe the hybrid market place can get to 20%-30% [market share] in the next five years…”
I do believe Vic may be right.
They could well get 20+% “market share” of listings…
…on a Sunday, when very few other agents list anything. And if they continue to #RElist in the same proportions that they currently do.
Rest of the week it’ll stay in LOW single figures. Just like it has for the last decade or so.
That’s making a profit put off for another 5 years.
“Hybrid estate agents can take significant market share within the next five years, the boss of Purplebricks has said”…
Aren’t we ALL ‘Hybrids’ now in any event?
Vic has to say something to keep his job and investors happy. Simple truth is they have never made it after how many years? and unlikely to as they do not control stock and markets. We are still awaiting the fall out of his declared litigation and HMRC investigation on Money Laundering procedures and on the latter, who knows if there has been a case of actual laundering?
The story is nothing more than hype to keep the city happy and hope for the best with share value that has been in the doldrums for a long time now.
“However, insiders suggest that a no sale, no fee model is a difficult departure for online agents needing to make future projections for fund-raising purposes, because while some of that income might materialise, much of it might not.”
Does PB have any plans to make a profit and not have to keep asking for money to keep its head above water.
I wonder when they’re going to realise the horrific truth. You may not necessarily need a high street location or shop window any more (we have neither). But you do need specialist staff who know the market, the trade and the property intimately enough to help buyers and sellers both, from start to finish. They must, must, must have more LPEs and more back up staff, with localised sales chasing, if they want to compete with regular agents.
Brand awareness only works when the employees fulfil the clients expectations. That’s is why so many big brands eventually fail. PB is a propaganda company and as the years have passed the public have come to learn this lesson with them.
More fantasia figures from the Mickey Mouse of estate agents. Meanwhile, here’s an extract from PURP s’ IPO:
“The UK market is particularly open to a disruptive new entrant taking substantial market share….
…Our model assumes Purplebricks’ market share of 7% by 2020, generating 100,000 transactions from a total market of 1.4m. Adding other services to the basic fee of £665 (outside London) and taking into account the higher London fee, we model just over £1,000 income per instruction (+VAT). The table below illustrates the group revenue on 100,000 and 200,000 transactions and on revenue per instruction running at the estimated current levels of £1,080 and (more plausibly) £1,300. The increase to £1,300 would reflect a higher proportion of London instructions and/or greater income from the existing portfolio of other services. The model makes no allowance for the planned expansion to a lettings service. Our Financial Analysis section provides our full estimates for each year to 2020.”
Fast forward to 2024:
“Purplebricks boss declares: High Street agents can take up to 90% of market share’ … (As he quietly moves to the back of the room and commences shredding his copy of ‘Disruption for Dummies’)…”
I thought of PB et al when watching Dragons Den last night – the lady with the clothes mending operation that had set out to to ‘disrupt the market’, raised large amounts in crowdfunding and spent shedloads in ‘building scale’ – resulting in vast losses every year of their trading and zero possibility to trading their way out of it because the business idea was never going to be viable. A situation rightly leading to an ‘I’m out’ from every one of dragons.
It’s just staggering how some people can repeatedly BS their way into getting others to part with money to support loss making enterprises that will never see a profit.
* NEWSFLASH from the “ Elf Times “
Vic Darvey believes in Father Christmas.
Sounds like another round of fundraising is on the horizon.
Hysterical!! 🙂
Someone has a fishing rod in hand this morning.
Have we not heard this all before?
Yes we have sp
…….but this time “it’s really, really true”.
Hopefully Vic was multi-tasking whilst he was giving his “statement”
……typing up his CV
This time next year Rodney!
Did he lick his finger and put it in the air before making that prediction? I guess this must be the result of a detailed survey of at least, say, 3 people that he were in his lounge at the time? Why on earth would a well respected paper even print something like that? It’s not news with any substance, it’s tabloid nonsense. ‘Freddie Starr Ate My Hamster’ is more newsworthy!!!
Love how PB have suddenly become “estate agents”…
wasn’t so long ago they were out to destroy “estate agents”
On that note of disasters abroad Bricks have whittled down the number of instructions on the books to just 70 in Australia
Guess full closure will be before Xmas
They forgot to add ……commented “the desperate Mr Darvey”
Absolute Dreamland Darvey!
Purplebricks must be in turmoil if this tosh is being trotted out?
Pick a number Vic, any number…..
After how many years Vic?, After how many millions Vic, After how many predictions Vic? Purplebricks is still stumbling along pretending to be an Estate Agent.
“Is Vic there?” …….”No, as you can see from his statement, he left the real world some time ago!”.
20% – 30% of virtual air Vic. It’s always 5 years Vic. You’ll be spouting nonsense from some other company long before that Vic.
Happy April 1st Purplebricks!
This guy Vic is becoming a little worrying coming out with these comments
“We believe the hybrid market place can get to 20%-30% [market share] in the next five years .”
Well I guess its below 50% as once mooted by Russell Quirk .
Very unlikely indeed especaily as Bricks instructions are going backwards
“Darvey also told the Telegraph – which described Purplebricks as “the struggling estate agent” – as “absolutely” not for sale.”
He doesn’t even seem to understand that choice is not within his gift .That will be decided by the stakeholders who have been increasing or decreasing their positions . If Axel decide to make an offer of say 130p per share to shareholders which might be acceptable to Tosca., Merian and Woodford this will take them over 50% and they will be home and hosed .
Vic can whistle
Furthermore Vic will certainly need to step up to the plate and deliver as his German friends can’t be very happy after all the disasters abroad that the UK bus is currently in reverse too .
Is Vic there? Possibly not !