By Millie Turner
Purplebricks shareholder Lecram Holdings has once again sought to oust the online estate agents’ chairman following months of lagging growth.
The digital agent confirmed today that it had received an order from Lecram to host a general meeting, in which shareholders will be asked to consider removing chairman Paul Pindar as a director of the company.
Lecram has called for Harry Douglas Hill, the founder of online property site Rightmove, to be appointed a director to eventually take over the helm as chairman.
Purplebricks’ board doubled down on its support for Pindar, adding that it believes he has the “continued support of a number of major shareholders”, including Axel Springer SE, which owns a 26.5 per cent stake in the company.
“The Board is firmly of the view that the Board changes proposed by the Requisition are not in the best interests of the Company or its shareholders,” the board said in a statement, adding that it is reviewing the “legal validity” of the order with its advisers.
Lecram, Adam Smith’s investment vehicle, first began its revolt against the chairman in July, saying that “urgent action” was needed to stifle “continuing cash burn” and “restor its credibility” among investors.
Chairman Paul Pinder has “presided over this highly unsatisfactory performance and you should now stand aside in favour of a replacement with necessary experience and skills,” Lecram wrote in a letter at the time.
Investors have proven more resilient to the investor revolt this time around. Purplebricks’ share fell nearly 80 per cent the day Lecram first voiced its woes.
However, Purplebricks dipped just 1.3 per cent into the red today. Still, the company has lost more than half of its stock price value since the beginning of the year, standing at just 11.40p by close of play today.
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