Purplebricks Share Discussion Threads

[bamboo2] 06/7/2016 08:35

hill, fyi this years target is 17130. This is based on the revenue forecast at £18.5m. Each listing generates approx £1,100 income.

I don't know where you got the 43,000 figure from...

[hillofwad] 06/7/2016 05:06

Bamboo sorry 75%5 under target!!!!

[hillofwad] 06/7/2016 05:04

Bamboo You are absolutely right they have done amazingly well to get 450 properties inthe last 2 weeks which iss till 50% under monthly target Falling further behind for this fiancial yeart that target set of 43,000 is disappearing over the horizon with its backside on fire. How on earth do you think in a crippled market they are going to be able to increase that in the forseeable future Why would anyone want to shell out a fee on the off chanceof selling aproperty ? Lets face it with crashing prices an agents fee is a very small consideration .Its best mnan for the job I had a chat with one oftheri operaters the other day on aproperty who clearly didnt fully understand sold stc Her assumption was as soon a sols were instructed that was job done and everything else a formality I pity the poor vendor of that property putting off potential interest


Prewar 312 letting instructions .It hasnt taken off Losing money. On a tenant find they chgarge about 3 weeks rent as a fee Mine charges 2 weeks rent This isnt even competitive with officebound letting agents They have a choice either pack it in now or use shareholders cash to buy market share . Another multi million £ spend on a TV advertising campaign specifically aimed at lettings. Maybe a beter route is to buy market share by acquiring one of the listed letting agents as currently rumoured. It will need £25 m of shareholders cash draining the pot from the pllisting monies t otake Belvoir out or a more modest £15m for Martin & Co .On top of that they are sending money downnunder.Have you got any better ideas or do you think 312 instructions is a winning hand!!

[bamboo2] 05/7/2016 19:49

When? £5m on ads in the last two weeks? I don't believe that for a minute.

[dlku] 05/7/2016 18:23

if they spent £5m on advertising to get income of £0.5m. Not so clever

[bamboo2] 05/7/2016 18:13

450 new properties listed in the two weeks since June 21. An income of about half a million pounds.

tbh I'm amazed that they managed to keep the run rate so high during this time.

[hillofwad] 05/7/2016 12:23

No but they are well behind target of 3.500pcm Brexit certainly put pay to any profit this year Their letting side has been an absolute washout with 302 listngs
They are going to have to use shareholders cash here to buy themselves out of trouble nation wide They are even listing deals done where they were sold privately Bamboo smell the coffee

hxxps://www.purplebricks.com/property-for-sale/2-bedroom-ground-floor-flat-aberystwyth-35697/#
This was sold privately in February by the vendor confirmed by purpelbricks no fee paid and still sitting in their lists

[bamboo2] 05/7/2016 08:47

hill, So listings have collapsed since the EU referendum have they?

[rubberbullets] 04/7/2016 15:42

When they stop spending money on advertising (which they will do as its running down) then growth in new joiners will slow and this will become a mega short

MEGA short loometh

[rubberbullets] 04/7/2016 15:41

MARKETSUK construction output falls at fastest pace since ’09 – Markit
6 hours ago
URL
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Britain’s construction industry suffered its worst performance in June for seven years and has slumped into contraction territory, a closely-watched survey of activity has suggested, as the sector was rocked by uncertainty over the outcome of the EU membership referendum.

The UK construction purchasing managers’ index dropped to 46 for June from 51.2 the previous month – economists had expected it to fall to 50.7. Any reading below 50 indicates contraction. Just over 80 per cent of responses were received before the result of the referendum, writes Nathalie Thomas.

The fall in the PMI was triggered by a steep decline in residential building work while the commercial sector was also hit. The result is the worst PMI reading since June 2009 and the first time the index has fallen below the crucial 50 mark since April 2013.

[hillofwad] 04/7/2016 13:40

Rumour is that rather than wheel out another expensive TV camapign to kickstart their failure to make any ground with their lettings they are in the market for 1ofthe lsited letting agents Belvoir by the looks of their soaring share price looks to be the likeley candisdate Easy one to buy with a majority shareholder stil behind forecasts on sales

[hillofwad] 04/7/2016 13:40

Rumour is that rather than wheel out another expensive TV camapign to kickstart their failure to make any ground with their lettings they are in the market for 1ofthe lsited letting agents Belvoir by the looks of their soaring share price looks to be the likeley candisdate Easy one to buy with a majority shareholder stil behind forecasts on sales

[tjbird] 04/7/2016 12:29

Construction PMI hits seven-year low


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1


The month of the EU referendum saw the UK construction purchasing managers’ index (PMI) dive into negative territory for the first time in more than three years.

The graph is heading in the wrong direction...
Above: The graph is heading in the wrong direction...

At 46.0 in June 2016, down from 51.2 in May, the seasonally adjusted Markit/CIPS UK construction PMI pointed to the weakest overall performance for exactly seven years.

Any PMI score above 50 indicates growth, and the higher the score the greater the growth; a score below 50 means contraction.

With 80% of survey responses received before the referendum result was announced on 24th June, the downturn in business activity was generally linked to uncertainty in the run-up to the big vote, rather than a response to the Leave outcome.

Residential construction was the worst performing sub-category of activity, with activity falling at the fastest pace since December 2012. Civil engineering activity remained broadly stable in June, while commercial building work saw a sharp loss of momentum and posted one of its weakest readings for six-and-a-half years.

[rubberbullets] 27/6/2016 18:48

Yes House Simple is no fee unless house sold

[rubberbullets] 27/6/2016 09:32

House Simple has a no sale no fee offer



Why use purple and risk lolly

[hillofwad] 24/6/2016 15:01

LOL Instructions are going to fall off a cliff They stuttered before Brexit and with the Housing Market coming to a halt suddenly no hay no pay doesnt look so bad This dream future profit stream has just gone Puff!!The Aussies they wont give a XXXX either

[prewar] 24/6/2016 12:43

Dlku/Rubber (one and the same)

Iz you a bit fick? For cash it's best to look at the Cashflow statement, the clues in the name.

Operating cash outflow before
changes in working capital (9,681,647)

Excludes the IPO costs which not sure will be a recurring cost.

[bamboo2] 24/6/2016 12:41

114 new listings since Wednesday [am] 22nd June 2016.

114 x £1,100

Hope it helps you.

[bamboo2] 24/6/2016 12:31

By 2020 50% of property transactions will be conducted using internet based services. I expect that PB will have a good percentage of that total.

Hope it helps you.

[dlku] 24/6/2016 12:29

Get your facts right, it was
Loss from operating activities (11,936,840)

So £12m

But they accelerated burn rate in H2

Jeffries says that when the cash runs out they will hand back the last £5m and shut the business down. Their bear case is 2p target

Hope it helps you

[prewar] 24/6/2016 12:13

What do you mean by soon and on what basis?

Given they burnt £10m last year and had £30m in the bank do you mean 3 years as soon?

This simple approach would ignore the Aussie investment but also ignore the growth which should also convert to cash generation given their business model. Latest forecast was break even so you'd assume barring some WC requirements cash will be neutral too.

Post your short up when you make it rubber.......

[rubberbullets] 24/6/2016 11:34

Will warn on profit soon

Needs more cash

[hillofwad] 21/6/2016 12:46

Gavin a highly respected Housing Analyst .It would be interesting to see Peel Hunt,s research note on Purplebricks . Bricks certainly at a turning point in their story .Rollout with over 200 experts virtually complete and no doubt expand as and when more instructions materialise .Brexit concerns clearly affecting the whole of the estate agency world We will need to see whether they step up to a monthly averageof 3.500 instructions to hit profitabilty this year