By Laura McGuire
Purplebricks has warned investors that a return to profitability early next year was unlikely, as the online-only estate agency continues to mull a sale in efforts to take in some cash.
Purplebricks’ share price was last trading down over 60 per cent after it revealed instruction levels in remained below last years levels, forecasted at 5,672 in the fourth quarter of 2023 compared to 10,964 in the same period of last year.
The business, which has fallen on tough times recently, largely due to a shake up in senior management, said that its cash position at the end of April is estimated to have stood at £9.1m.
In February, the estate agent, Purplebricks said it was reviewing its future and later revealed that it would launch a formal sale process – with several potential buyers expressing an interest.
For Sale: Purplebricks
Purplebricks has appeared to have doubled down on this decision this morning, noting that a small number of parties “remain in discussions with the group in relation to the sale of the company or some or all of the group’s business and assets”.
Purplebricks said: “Negotiations are ongoing, however, at the current time, the transactions being contemplated, if concluded, would be expected to deliver returns to shareholders materially below the Company’s current share price.
“There can be no guarantee that these negotiations will result in any such transaction, and there can also be no certainty on the timings or level of any return to shareholders.”
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