Announcement • Jun 16
Purplebricks Group Delists its Ordinary Shares of 1 Pence Each on AIM on 16 June 2023 Purplebricks Group plc confirmed that, further to the Result of General Meeting announcement on 2 June 2023, admission of the Company's ordinary shares of 1 pence each ("Ordinary Shares") to trading on AIM will be cancelled at 7:00 a.m. on 16 June 2023 (the "Cancellation"). New Risk • Jun 12
New major risk - Revenue and earnings growth Earnings have declined by 17% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (31% average weekly change). Earnings have declined by 17% per year over the past 5 years. Market cap is less than US$10m (UK£1.38m market cap, or US$1.74m). Minor Risk Latest financial reports are more than 6 months old (reported October 2022 fiscal period end). Announcement • Jun 02
Lecram Withdraws Bid for Purplebricks UK-based digital real estate platform Purplebricks Group Plc (AIM:PURP), whose business is targeted by peer Strike Limited, on May 31, 2023 said that the rival suitor attracted, Lecram Holdings Ltd, has withdrawn its indicative proposal to acquire the company. Lecram has decided not to proceed and is not intending to make an offer, a filing said. The motives for the move were not revealed. Purplebricks disclosed the fresh takeover interest earlier this week. Lecram, already a shareholder, made an indicative proposal to acquire Purplebricks at 0.5 pence per share in cash. Shares in Purplebricks were trading 8.70% higher at 0.50 pence as of 1212 BST in London on June 1, 2023. The British digital real estate platform had earlier in May reached a conditional agreement to transfer substantially all of its trading business and assets to Strike. The deal has a symbolic price tag of GBP 1 (USD 1.23/EUR 1.15), plus the assumption of substantially all of the target company's liabilities. Announcement • May 27
Lomond Group Scotland Ltd acquired entire rental portfolio of Purplebricks in Scotland from Purplebricks Group plc (AIM:PURP). Lomond Group Scotland Ltd acquired entire rental portfolio of Purplebricks in Scotland from Purplebricks Group plc (AIM:PURP) on May 26, 2023.Lomond Group Scotland Ltd completed the acquisition of entire rental portfolio of Purplebricks in Scotland from Purplebricks Group plc (AIM:PURP) on May 26, 2023. Announcement • May 20
An unknown buyer acquired Assets of Strike from Purplebricks Group plc (AIM:PURP) for £1. An unknown buyer acquired Assets of Strike from Purplebricks Group plc (AIM:PURP) for £1 on May 19, 2023.
An unknown buyer completed the acquisition of Assets of Strike from Purplebricks Group plc (AIM:PURP) on May 19, 2023. Announcement • May 13
An unknown buyer acquired a 11.96% stake in Purplebricks Group plc from Momentum Global Investment Management Limited and Inflection Point Investments LLP. An unknown buyer acquired a 11.96% stake in Purplebricks Group plc from Momentum Global Investment Management Limited and Inflection Point Investments LLP on May 11, 2023.An unknown buyer completed the acquisition of a 11.96% stake in Purplebricks Group plc from Momentum Global Investment Management Limited and Inflection Point Investments LLP on May 11, 2023. Price Target Changed • Apr 09
Price target decreased by 27% to UK£0.11 Down from UK£0.15, the current price target is provided by 1 analyst. New target price is 58% above last closing price of UK£0.07. Stock is down 73% over the past year. The company is forecast to post a net loss per share of UK£0.084 next year compared to a net loss per share of UK£0.14 last year. Major Estimate Revision • Mar 07
Consensus revenue estimates fall by 14% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from UK£70.0m to UK£60.1m. Forecast losses increased from -UK£0.056 to -UK£0.084 per share. Real Estate industry in the United Kingdom expected to see average net income decline 50% next year. Consensus price target of UK£0.11 unchanged from last update. Share price rose 10% to UK£0.083 over the past week. Announcement • Feb 18
Purplebricks Group plc Provides Earnings Guidance for the Full Year 2023 Purplebricks Group plc provided earnings guidance for the full year 2023. The Group now expects to deliver revenue for year 2023 of between £60 million and £65 million. Major Estimate Revision • Dec 15
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from UK£70.0m to UK£71.6m. Forecast EPS reduced from -UK£0.03 to -UK£0.06 per share. Real Estate industry in the United Kingdom expected to see average net income decline 42% next year. Consensus price target down from UK£0.15 to UK£0.11. Share price was steady at UK£0.092 over the past week. Reported Earnings • Dec 08
First half 2023 earnings released: UK£0.048 loss per share (vs UK£0.066 loss in 1H 2022) First half 2023 results: UK£0.048 loss per share (improved from UK£0.066 loss in 1H 2022). Revenue: UK£34.5m (down 17% from 1H 2022). Net loss: UK£14.6m (loss narrowed 28% from 1H 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.7% decline forecast for the Real Estate industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 22 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. CFO & Director Dominique Highfield was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Nov 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Adrian Gill was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Aug 23
Consensus EPS estimates fall by 131% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from UK£73.4m to UK£70.0m. Losses expected to increase from UK£0.02 per share to UK£0.04. Real Estate industry in the United Kingdom expected to see average net income decline 11% next year. Consensus price target of UK£0.18 unchanged from last update. Share price was steady at UK£0.17 over the past week. Board Change • Aug 20
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director Elona Mortimer-Zhika was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Aug 11
Group Chief Executive Officer recently bought UK£100k worth of stock On the 5th of August, Helena Marston bought around 630k shares on-market at roughly UK£0.16 per share. This was the largest purchase by an insider in the last 3 months. This was Helena's only on-market trade for the last 12 months. Reported Earnings • Aug 03
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: UK£14.00 loss per share (down from UK£0.013 profit in FY 2021). Revenue: UK£70.0m (down 23% from FY 2021). Net loss: UK£42.0m (down UK£45.9m from profit in FY 2021). Revenue missed analyst estimates by 8.7%. Earnings per share (EPS) also missed analyst estimates by 259%. Over the next year, revenue is forecast to grow 12% compared to a 14% decline forecast for the industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 146 percentage points per year, which is a significant difference in performance. Price Target Changed • Apr 27
Price target decreased to UK£0.29 Down from UK£0.54, the current price target is an average from 4 analysts. New target price is 36% above last closing price of UK£0.21. Stock is down 80% over the past year. The company is forecast to post a net loss per share of UK£0.039 compared to earnings per share of UK£0.013 last year. Recent Insider Transactions • Mar 19
Non-Executive Chairman recently bought UK£125k worth of stock On the 15th of March, Paul R. Pindar bought around 700k shares on-market at roughly UK£0.18 per share. This was the largest purchase by an insider in the last 3 months. This was Paul R.'s only on-market trade for the last 12 months. Major Estimate Revision • Feb 07
Consensus EPS estimates fall by 34% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from UK£80.7m to UK£76.7m. Losses expected to increase from UK£0.03 per share to UK£0.04. Real Estate industry in the United Kingdom expected to see average net income growth of 7.4% next year. Consensus price target down from UK£0.54 to UK£0.29. Share price fell 2.9% to UK£0.20 over the past week. Board Change • Feb 02
Less than half of directors are independent Following CFO & Director Steve Long's arrival on 01 February 2022, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Elona Mortimer-Zhika was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 05
Price target decreased to UK£0.83 Down from UK£1.02, the current price target is an average from 3 analysts. New target price is 152% above last closing price of UK£0.33. Stock is down 45% over the past year. The company is forecast to post a net loss per share of UK£0.013 compared to earnings per share of UK£0.013 last year. Major Estimate Revision • Aug 11
Consensus forecasts updated The consensus outlook for 2022 has been updated. Expected to report loss instead of -UK£0.0024 instead of UK£0.0027 per share profit previously forecast. . Revenue forecast unchanged at UK£96.2m Real Estate industry in the United Kingdom expected to see average net income growth of 24% next year. Consensus price target down from UK£1.04 to UK£1.02. Share price fell 3.4% to UK£0.65 over the past week. Reported Earnings • Jul 09
Full year 2021 earnings released: EPS UK£0.013 (vs UK£0.038 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: UK£90.9m (down 18% from FY 2020). Net income: UK£3.90m (up UK£15.4m from FY 2020). Profit margin: 4.3% (up from net loss in FY 2020). Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 37% per year, which means it is significantly lagging earnings. Recent Insider Transactions • Apr 08
Senior Independent Director recently bought UK£251k worth of stock On the 6th of April, Simon Downing bought around 258k shares on-market at roughly UK£0.97 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought UK£588k more in shares than they have sold in the last 12 months. Is New 90 Day High Low • Jan 07
New 90-day high: UK£1.07 The company is up 61% from its price of UK£0.67 on 09 October 2020. The British market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.53 per share. Reported Earnings • Dec 17
First half 2021 earnings released: EPS UK£0.013 The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: UK£44.2m (down 6.2% from 1H 2020). Net income: UK£3.90m (up UK£6.50m from 1H 2020). Profit margin: 8.8% (up from net loss in 1H 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Dec 16
New 90-day high: UK£0.89 The company is up 16% from its price of UK£0.77 on 16 September 2020. The British market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.36 per share. Major Estimate Revision • Nov 27
Analysts update estimates The 2021 consensus revenue estimate was lowered from UK£91.1m to UK£86.0m. The company is forecast to report a profit instead of a loss with analysts raising their EPS forecasts from -UK£0.0062 to UK£0.0052 for the same period. The Real Estate industry in the United Kingdom is expected to see an average net income growth of 3.7% next year. The consensus price target increased from UK£0.99 to UK£1.03. Share price is down by 6.1% to UK£0.69 over the past week. Major Estimate Revision • Nov 11
Analysts increase EPS estimates to -UK£0.0062 The 2021 consensus revenue estimate increased from UK£90.0m to UK£91.1m. Analysts raised their EPS forecasts from -UK£0.0095 to -UK£0.0062 in 2021. The Real Estate industry in the United Kingdom is expected to see a 14% decline in net income next year. The consensus price target was lowered from UK£1.02 to UK£0.99. Share price is up 5.2% to UK£0.65 over the past week.