TIDMPURP
RNS Number : 1161Y
Purplebricks Group PLC
07 May 2019
7 May 2019
Purplebricks Group plc
("Purplebricks", the "Company" or the "Group")
Trading Update and Directorate Changes
Purplebricks Group Plc (AIM: PURP), a world leading hybrid real
estate agency, provides an update in relation to current trading,
its international strategy and changes to its management team.
Trading update
With the financial year now concluded, the Board confirms that
it expects Group revenue to be within the GBP130-140 million range
it guided to on 21 February 2019. Cash balances as at 30 April 2019
will be not less than GBP62 million.
UK
Whilst the UK property market remains challenging, the Company
continues to out-perform the market and the Board remains confident
about the future of the business. Having established a
market-leading position, there remain many opportunities for
further profitable growth and this will be a key area of focus
going forward.
Canada
The Group's Canadian business continues to perform well and
trading is in line with management's expectations. The Board has a
strong belief in the future opportunities in this market.
Australia
During the two and a half years that Purplebricks has been
operating in Australia, market conditions have become increasingly
challenging. This, combined with some execution errors, has
resulted in the business not delivering the progress the Board
expected.
The Board has therefore concluded that the prospective returns
from Australia are not sufficient to justify continued investment.
Accordingly, the Group has chosen to exit the Australian market and
the business there has been put into an orderly run down with
immediate effect, pending closure. The business remains committed
to our current customers.
US
Whilst good progress has been made in launching our brand across
the US, the Board has materially cut investment in marketing and
other overheads to reduce expenditure to sustainable levels and
begun a strategic review. As part of this review, management
proposes to examine the options for delivering the next phase of
growth in a more effective and cost-efficient way including more
closely considering the opportunities and risks associated with a
materially scaled back US business. A further announcement on this
strategic review will be made in due course.
Management changes
Michael Bruce, the Group's Founder and Chief Executive Officer
is stepping down from the business with immediate effect. In turn,
the Board has appointed Vic Darvey, previously Purplebricks' Chief
Operating Officer, to the role of Chief Executive Officer and to
the Board of Purplebricks.
Vic joined Purplebricks in January 2019 following a successful
career most recently as Managing Director of Moneysupermarket.com
Group plc. Vic has extensive experience of leading strong
technology-focused, customer-centric businesses and will play a key
role in guiding Purplebricks through a period of greater focus and
strong execution.
Paul Pindar, Non Executive Chairman, said: "Firstly, I would
like to place on record our thanks to Michael for the truly
remarkable contribution that he has made to the creation and
development of Purplebricks. Michael's vision in creating the UK's
leading hybrid estate agent has been deeply impressive, as has his
relentless energy in developing the business both in the UK and
internationally.
The Board is delighted to have an executive of Vic Darvey's
calibre to take on the leadership of our business for its next
important phase of development. We have a lot to do and Vic has a
clear vision of the priorities we need to address.
Importantly, we are very conscious that the Group's performance
has been disappointing over the last 12 months and we sincerely
apologise to shareholders for that. With hindsight, our rate of
geographic expansion was too rapid and as a result the quality of
execution has suffered. We have also made sub-optimal decisions in
allocating capital. We will learn from these errors and will not
make them again."
Vic Darvey, Chief Executive Officer, commented: "Going forward,
we have a very clear understanding of the levers available to us to
achieve growth. We have two outstanding businesses in the UK and
Canada, both of which enjoy market-leading positions. We have also
made significant progress in the US building a disruptive brand in
the Real Estate market and our proposed strategic review will allow
us to determine how we deliver the next phase of growth in a more
effective and cost-efficient way. We look forward to reporting our
results on 3 July 2019 for the year ended 30 April 2019."
Other information
This announcement contains inside information within the meaning
of the Market Abuse Regulation.
---END---
AIM disclosures
Victor Marc Darvey is 46 years old and has held no other
directorships or partnerships in the past five years.
There is no further information to be disclosed pursuant to
Schedule Two Part (g) of the AIM Rules for Companies.
Enquiries
Purplebricks +44 (0)20 7466 5000
Vic Darvey, CEO
--------------------
James Davies, CFO
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Adam Kay, Head of Investor Relations
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Zeus Capital (NOMAD) +44 (0)20 38295000
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Nick Cowles, Benjamin Robertson
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Peel Hunt +44 (0)20 7418 8900
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Dan Webster, George Sellar
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Investec +44 (0)20 7597 5970
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Carlton Nelson, Neil Coleman
--------------------
Buchanan +44 (0)20 7466 5000
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David Rydell, Jamie Hooper, Catriona Flint
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The person arranging release of this announcement on behalf of
the Company is James Davies, Chief Financial Officer.
Forward-looking statements
This announcement includes statements that are, or may be
considered to be, "forward-looking statements". By their nature,
such statements involve risk and uncertainty since they relate to
future events and circumstances. Results may, and often do, differ
materially from forward-looking statements previously made. Any
forward-looking statements in this announcement reflect
management's view with respect to future events as at the date of
this announcement. Except as required by law or by the AIM Rules of
the London Stock Exchange, the Company undertakes no obligation to
publicly revise any forward-looking statements in this announcement
following any change in its expectations to reflect subsequent
events or circumstances.
About Purplebricks
Purplebricks is a world leading hybrid real estate agency. Based
in the UK, it also operates in the US, Canada and is invested in
Homeday.de in Germany. Purplebricks combines highly experienced and
professional Local Property Experts (US: Local Real Estate Experts)
and innovative technology to help make the process of selling,
buying or letting more convenient, transparent and cost effective.
Purplebricks shares are traded on the London Stock Exchange AIM
market.
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
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END
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