Purplebricks is getting ready to float on the stockmarket at a valuation of around £250m, according to Sky News.
The company could make its stockmarket debut as early as the first week of next month and has appointed investment bank Zeus Capital to advise it.
According to Sky News, Purplebricks is the fourth-largest estate agency in the UK, commanding 60% market share of online agents.
Sky says: “If successfully completed, a listing would reflect a remarkable growth story even by the standards of British digital and technology companies.
“Just six months ago, Neil Woodford, the leading fund manager, increased his stake in Purplebricks to more than 25% when it raised new money at a valuation of just over £100m.
“Not much more than a year ago, it was worth just £7m.”
Other backers of Purplebricks, run by brothers Michael and Kenny Bruce, include former Capita boss Paul Pindar.
The Bruce brothers owned midlands agents Burchell Edwards, selling it to Connells in 2011.
Comments (26)
You’ll see from my recent blog that they copied our marketing description. Their house in the same development listed at £230k and sold.
Ours listed at £260k and sold for full asking price. Is £798 for ‘expert local advice’ good value???
https://www.ewemove.com/category-5/purpletricks-com/
Hmmm… Mr Ackroyd I hate to do this but I think you’re being a tad unfair here.
Copying your bumph is one thing – but take it as a compliment that yours was clearly better than any attempt they may have made.
Claiming a better sale?
I think you need to compare the properties before bleating you’re the better tup in that particular field.
From where I’m standing/sitting/reading……. someone ought to call The Police!…… investigation required!!
I’m currently dealing with 2 chains with PB in, and both, their clients have felt that their sales have been left to chance (local expert very difficult to reach) which has resulted in my staff having to pick up the slack.
Also, as an exercise, I’ve just called PB to ask about a 2 bed house they have listed stating 2000sq ft On the floor plan which is actually around 650sq ft and the ‘uk based expert’ was not able to confirm if this was either right or wrong.
I wouldn’t pay £250 for it…..
I would be interested to know the following:
“How many buyers and sellers having used an online agent would use them again in the future”
The reason i ask this is because everybody i have spoken to that have used them have been disappointed in service. – Admittedly its not massive numbers as they have little stock but if 100% said to me they will never use an internet agent again, i bet the figure is high nationally!
Purple Bricks are an online business Smile Please, Generally speaking, interenet shoppers look at online reviews to see how satisfied customers are with a service. Assuming they’re not made up, PB have rather a lot of good ones!
From previous chats with others on here we know their reviews are made up.
So much so that they have even posted reviews with “Insert name here”
Let me make it clear, I’m VERY sceptical about online agents in general, PB in particular! However, to suggest that chats on here “proves” their reviews are all made up is stretching it a bit don’t you think? There are plenty of other outlets for customer frustration/dissatisfaction other than Trust Pilot. Have you seen a lot of negative commentary from non-acronym people? If so where?
I was supplied the screen shots from trustpilot with multiple “scripts” from PB adding their own reviews.
they stand to make by the looks 250 million. this is in my opinion a legalized con.
They lie that they are a like for like service, they manipulate figures and they make up reviews.
But their home based staff can earn £100,000 per annum according to their careers section, which is a fantastic salary, don’t you think?
Much as I share the general feeling that a £250m valuation is madness, it’s NOT about current/historic profitability. What investors are after is a future return and that’s driven (ultimately) by how many instructions PB can build up to over time. Who the hell knows but if the onliners do get a meaty overall market share (say upwards of 30%), and they get the lions share of that, then they have a BIG business!
Sorry I thought it was April 1st not Friday 13th when I read this. 250 MILLION???????????
And exactly how much profit has it made to date?
“commanding 60% market share of online agents.” If they claim 60% of the online market doesn’t that only equate to 2-3 % of the total market share?……….If they pull this off good luck to them but, in my view, it will have been more an exercise in how to gain investment funds than create a professional, working estate agency model for the public to use.
The men on TV are actors, there sales department are a call centre in Southend-on-sea that deal with everything from insurance to whatever, and the local representative cover around 200 square miles… local my ****! Do invest as you will probably make money, as I believe we are beyond the point of return when it comes to the stock market, so wade on in!
Going off at a slight tangent but …..
THIS IS FOR THE GENERAL PUBLIC , (if you are reading this). Look at the above comments. you may save a few quid on listing the property but do not forget it is upfront and non-refundable (after they have your money are they interested?) they also have no idea the price of local properties so you could lose thousands.
They have no interest in doing any real sales progression, you will pretty much be left alone and the only thing they will do is get an update from a solicitor not actual progress the sale. 1 in 3 sales fall through in UK did you really want to take a chance with an onliner?
On a personal note, i know a few agents working for PB and in my opinion are “Journeymen” they are agents that have been kicking around the industry for years, limping from one agent to another with an incredibly poor record. They are some of the worst agents out there.The thought they give decent service or could negotiate you a good deal is laughable.
Who did the market valuation… Zoopla! What a load of Bulls%$t, this is what’s wrong with the global economy. Stockbrokers who possibly believe every TV ad they have ever seen.
I know, I’m going to float my 3 chain estate agency on the stock market, asking price £20m. Its revolutionary… I promise!
Yippee! Now we all have the chance to lose a few quid!
House of Cards! Operational issues such as retaining ‘experienced agents’ and recruiting no experience local ‘experts’ will continue to impact the bottom line. Were the business model founded on a fair fee for the substantial amount of hours required to sell a property, it might have a slim chance. Nevertheless, those involved at the start will see a ROI because its easy to fool some of the people, some of the time.
Agreed A.N
be careful though, people in glass houses…..
“We will make huge profits, Purplebricks promises investors- Rosalind Renshaw March 24, 2014
Purplebricks.com, the new online agency founded by the brothers who sold Burchell Edwards to Connells, told investors it will make annual profits of £25m in just over two years’ time.
Choosing an appropriate date just over 2 years from March 24 2014; April 1st 2016 can I ask how the £25,000,000 is coming along? With only 138 daysto go [a little over full quarter’s trading to go taking in the market has gone quiet for Christmas] the accountants will have a fair idea how achievable that prediction was. How’s it going?
With a net worth of only £1.5 million at the end of 2013/14 year my guess is £25 million was an ambitious ask for the final 12 months of the boast.
A associate recently had a PB valuation from a rep located 25-30 miles away covering a large area. His low fees would have been quite attractive if the valuation wasn’t £30k lower than local agents who obviously felt they could do more.
Ummmm save a little OR loose a LOT in what might be achieved.
It would be wise for any PB investors to try before they buy. …………
Trevor,
I recently had 3 valuations from high street agents, and there was a £95k disparity between them (on a property worth c.£600k) – so I don’t believe the issue of under / over valuing lies solely with PB or online agents in general. And did the chosen agent in question actually sell the property for £30k more than PB valued it at?
Sweeping statements….
Have to agree with this comment, unfortunately…
Massive well done to the brush brothers if this comes off for them. I feel sorry for the everyday investors who will be duped by stats such as , Purplebricks is the fourth-largest estate agency in the UK, commanding 60% market share of online agents.
*Bruce not brush
Think the first attempt was the better one, stevedp316! ;o)