Purplebricks Interim Results; Unpopular As An Estate Agent?
Spreadex | Dec 05, 2018 11:46
Having climbed from an opening price of £4.25 to £5.02 by the start of February, it was all looking good for the AIM stock in early 2018. However, since then its year has turned into a disaster, with the steadiness of its decline from May-onwards suggesting it has fallen foul of wider fears surrounding the housing sector.
By mid-November things had got so bad that it was trading at £1.63, its worst price in around 22 months. Purplebricks Group PLC now sits at a current trading price of £1.72.
Neither of its recent statements have been able to turn things around for the former investors favourite. In mid-October it revealed it was entering Germany through a deal with Axel Springer (LON:0NV2). Purplebricks paid €12.7 million for a 50% share in NewCo, a joint venture between it and the digital publisher which acquired a 25.9% of Homeday, the country’s market leader, with potential to up that stake in 2019. The main attraction is Germany’s higher commission rates, with the annual sales commission income estimating at €5.1 billion.
The company then gave a fuller update of its half year trading at the start of November. There it revealed it had seen year-on-year revenue growth of around 20% in the UK, despite the ‘challenging’ market backdrop, thanks to ‘double digit growth’ in instructions. Internationally, meanwhile, it said that ‘sellside lists are growing and buyside revenue is increasing’ in the US, with ‘some challenges’ in Australia and the newly launched Canada project in line with the firm’s ‘high expectations’.
With full year revenue guidance of between £165 million and £185 million, compared to £93.7 million in 2018, investors will want to see that the company is well on its way to reaching that target with Wednesday 12th December’s interim results. Updates on its international standing will also be important.
Purplebricks Group PLC (LON:PURP) has a consensus rating of ‘Buy’ alongside an average target price of £4.47.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.