Purplebricks Group Plc, the UK estate agent that has seen its market capitalization shrink from a peak of £1.4 billion in 2017 to a mere £26 million, is putting out the “For Sale” sign.
(Bloomberg) — Purplebricks Group Plc, the UK estate agent that has seen its market capitalization shrink from a peak of £1.4 billion in 2017 to a mere £26 million, is putting out the “For Sale” sign.
The property broker has started a review that may result in a sale of the company or some of its assets after undertaking a turnaround plan that yielded more costs than expected, the Solihull, England-based firm said in a statement on Friday.
“The board recognizes that the potential of the group may be better realized under an alternative ownership structure,” it said. The company, which appointed Zeus as financial adviser, is not in talks with any interested parties nor has it been approached by potential bidders, it added.
Purplebricks also lowered its revenue forecast for the year ending April 30 to a range of £60 million to £65 million. That’s below the £67.5 million to £72.5 million it predicted in December.
The company also expects an adjusted loss before interest, tax, depreciation and amortization of £15 million to £20 million, although it said it’s confident it can return to positive cash generation in early fiscal 2024. The company booked about £1.2 million in one-off costs linked to its turnaround plan in the second half to date.
The shares plunged as much as 17% on the London Stock Exchange, the most since December 2021. They were trading at down 15% at 8.45 pence as of 10:13 a.m. local time.
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