Purplebricks chief Michael Bruce’s ambition undimmed by share slideComments Off on Purplebricks chief Michael Bruce’s ambition undimmed by share slide
Purplebricks founder Michael Bruce has taken the online estate agent’s share slide since its float last month “on the chin”, but his resolve to tackle traditional rivals is undimmed, he said.
Bruce, who charges around four times less than bricks-and-mortar agents, posted a maiden £6.4 million pre-tax loss for the six months to October 31 but the float raised £22.8 million and the firm is cash generative.
The company’s shares have slipped from a float price of 100p to 76.5p however, valuing it at £180 million.
“At the end of the day we have to continue with the plan. If we continue to take business from traditional agents the share price will look after itself,” he said.
Purplebricks is on course for 2000 sales instructions this month and plans to double its number of local property experts to 350 by April next year.
Separately, housebuilder Crest Nicholson said it was snapping up land in London suburbs like Sydenham and West Wickham as it grows the capital as a share of its business.
It aims for London to account for 10% of its 4000 homes sales target by 2019. Crest Nicholson’s pre-tax profit rose 32% to £154 million in the year to October.