Purplebricks Share Discussion Threads

[hillofwad] 16/6/2016 13:18

My mistake it had reached 1660 by September and cranked over the 2000 by November when they increased their LPES to 165 This fell back substantialy in December and January admittedly a poor time for estate agents Went back over 2000 after January.April being a bit of a one off and in May and June growth has flattened out again The point is 2015 showed meteroic growth 2016 modest at best and certainly not commensurate to their advertising spend
I expect them to grow this year up to a point where they just might move into profit Further future growth is pure specualation and current valuation wildy optimistic Instructions need to go well over 50k to justify this Great idea but the rest of the property market are perfectly capble of adapting to meet any challenge

[glaws2] 16/6/2016 12:50

Where does the 2500 for last Sept come from - can't find any reference to it in any RNS ?

[hillofwad] 16/6/2016 12:42

Glaws If you look at graph PURP flew and gained traction as the number of LPE experts increased til last September where instructions grew to 2,500 Since then the average has fallen below that level even with April hitting a new high of 2827
Growth has stalled

[glaws2] 16/6/2016 12:17

I'm not saying it will happen but if you extrapolate the current growth you do get towards the ~£45m revenue. This is of course driven the increase in LPEs.

[monkeywench1] 16/6/2016 11:58

Based on my experience I will not be topping up my holding:

I took a small position in PURP with a view to increasing my position after further due diligence.

I am also selling my home through purple brick which has given me a chance to test their marketing claims. There have been a few minor niggles with my LPE, however these were overcome though dialogue with my LPE.

My concern currently is the lack of support/customer service from the Central Team at PB. I was given contradictory answers to a query i posed on the 24/7 online web chat so I rang PB and asked to speak to a person who would be able to clarify the situation. The advisor was very reluctant to let me speak to the Team Leader and quite rudely put me on hold mid sentence. I asked her if realised what she had done and she refused to accept what she had done until i reminded her that the call was being recorded. Only then did she apologise.

Having been poorly treated and more importantly not been given a clear answer to my query I complained to PB via their Official Complaints Procedure. Their CP states that I would receive a reply within 24 hours. The response to my email took PB 7 days. This email did not answer my original question so I escalated my complaint to Stage 2. PB states that the Regional Director will contact me with 2 working days.I also asked for my Complaint Reference Number which should have been provided in Stage 1.

After 6 days i had still not received a response so I wrote to the Customer Service Manager at PB Head Office in Solihull. This was sent recorded post and was signed for on delivery. A further 12 days have passed since I sent the Letter and I have still not received a response. I also have not received a CRN.

My thoughts at this stage are that PB are undoubtedly cheap however they could improve with regard to Customer Service and After Sales Support. Maybe they do not have the resource to give the service they promise? I understand their will be growing pains in a new venture, however politeness costs nothing and their staff should be able to give a clear answer to a question ( or pass on to someone who can ).

I do not have much faith in PB Complaints Procedure however I will pursue my complaint until I receive a satisfactory response to my query.

[hillofwad] 16/6/2016 11:58

Well its month 2. and Both May and June so far looking to be below 3,500 pcm the average needed to hit £43m revenue +Unlikely that the sales market is going to crank up nationally for the rest of the fiancial year so what is going to change in the next few months for PURP to be able them to up their ante?

[glaws2] 16/6/2016 11:52

Liquidkid - current 2017 forecasts are for £43-49m revenue.

[dlku] 16/6/2016 10:52

buying this is like putting your hand in a blade

[liquidkid] 16/6/2016 10:51

The numbers are wrong or I can't do the math again. These statements don't add up:

- Sold £2.8bn of (UK) property in year, Plans to launch in australia in 2016,
a £3.3bn market

- The conservatively estimated maximum investment will take place over the
next two years of £10m

- Administrative and establishment expenses (UK) 2016 (9,6mn) 2015 (3,97mn)

- uk business will move into profit in current financial year.


So by the looks of it,
The Aussie market is a tiddler compared to the uk spending £10mn on it would
be similar to UK spending.

For the UK to be Profitable Revenue will have to at least double i.e. up 100% to 40mn Gross profit will be ~ £20mn, Marketing ~ £10, Admin ~ £10 = marginal Ebitda profit.

So so what if UK is profitable on a Ebitda basis all the other costs are going to be way over the mark.

[hillofwad] 16/6/2016 09:56

Jambo Any chance of pasting the zeus note as you have to pay to join up to read!!!

[hillofwad] 16/6/2016 08:37

Prewar Not currently invested

[hillofwad] 16/6/2016 08:37

Prewar Not currently invested

[hillofwad] 16/6/2016 08:36

Australia Burning more cash Adding a new thread to down under

[prewar] 16/6/2016 08:33

Post your shorts/spreads up when you make them gurus.

[dlku] 16/6/2016 07:36

in a rubbish market buy profitable firms not those which are losing £1m a month and are gona need a placing within the next 12 months

look at ocado new low

[prewar] 16/6/2016 07:13

Strong results, expected to be profitable for FY2017, move into Australian market is interesting, looks like lots of low-hanging fruit there. Plenty of cash retained to support the growth ambitions.

[monkeywench1] 15/6/2016 22:20

Hill

Yes..subject to contract.

However, the property was very sought after. That was why I chose PB as it is the cheapest way to sell a very saleable property.

I would mention that the LPE tried to market the property between £xxx and £yyy. I had to be very assertive to ensure the LPE marketed the property at Offers In Excess Of £yyy. I actually achieved an offer of £10,000 over £yyy.

This demonstrates how in demand the property was/is.

[hillofwad] 15/6/2016 21:57

Monkey All important question Has your house sold?

[monkeywench1] 15/6/2016 20:05

I took a small position in PURP with a view to increasing my position after further due diligence.

I am also selling my home through purple brick which has given me a chance to test their marketing claims. There have been a few minor niggles with my LPE, however these were overcome though dialogue with my LPE.

My concern currently is the lack of support/customer service from the Central Team at PB. I was given contradictory answers to a query i posed on the 24/7 online web chat so I rang PB and asked to speak to a person who would be able to clarify the situation. The advisor was very reluctant to let me speak to the Team Leader and quite rudely put me on hold mid sentence. I asked her if realised what she had done and she refused to accept what she had done until i reminded her that the call was being recorded. Only then did she apologise.

Having been poorly treated and more importantly not been given a clear answer to my query I complained to PB via their Official Complaints Procedure. Their CP states that I would receive a reply within 24 hours. The response to my email took PB 7 days. This email did not answer my original question so I escalated my complaint to Stage 2. PB states that the Regional Director will contact me with 2 working days.I also asked for my Complaint Reference Number which should have been provided in Stage 1.

After 6 days i had still not received a response so I wrote to the Customer Service Manager at PB Head Office in Solihull. This was sent recorded post and was signed for on delivery. A further 12 days have passed since I sent the Letter and I have still not received a response. I also have not received a CRN.

My thoughts at this stage are that PB are undoubtedly cheap however they could improve with regard to Customer Service and After Sales Support. Maybe they do not have the resource to give the service they promise? I understand their will be growing pains in a new venture, however politeness costs nothing and their staff should be able to give a clear answer to a question ( or pass on to someone who can ).

I do not have much faith in PB Complaints Procedure however I will pursue my complaint until I receive a satisfactory response to my query.

[hillofwad] 15/6/2016 09:21

hxxp://www.hardmanandco.com/docs/default-source/company-docs/purplebricks-group-documents/purplebricks-dec15

Suprised that you havent read this as an investor as its the report commissioned by Bricks at the time of the flotation.You will note the forecasts which were made after full consultations with mangaement are flagging behind The figures you are flaggng up highlight that You will also note the e buiness grew rapidly The rate of growth peaking at time of flotation Sincethat time the growth rate has falttened despite tV advertiisng campaign. No doubt the online agents market is set for growth but there is no standout reason why Bricks will monoploise that with their motley collection of "experts" Its just a platform any agents can replicate both Savills and Countrywide will be using this more and more as part of their tariff of services

[bamboo2] 15/6/2016 08:33

hill, I DO get it.

I am posting researched factual information.

Where does the Hardman target come from? Surely the business will grow gradually?

It already has reached a considerable size in the last year alone.

It is forecast that 50% of property transactions will be internet based by 2020. PB look well placed to obtain a significant part.

[hillofwad] 15/6/2016 07:58

Bamboo You still dont get it In the Hardman report they pencilled in 43.000 instructions this year with a large loss envisaged This averages out at 120 per day So you flagging ip "40 in the last 24 hours" as a trumpet call is merely stating they are falling further behind schedule . Clearly the referendum doesnt help biut all the signs are that in a post referendum world it aint geting any easier.In addition they have new competiton ibbling away at the pot This really is a shot in the dark

[dlku] 15/6/2016 06:12

in a rubbish market buy profitable firms not those which are losing £1m a month and are gona need a placing within the next 12 months

look at ocado new low