19th Dec 2022 14:38
(Alliance News) - Purplebricks Group PLC on Monday said shareholders voted against Lecram Holdings Ltd's resolutions to remove Paul Pindar as chair and appoint Harry Hill to the board of directors.
The Solihull, England-based online estate agent said 72% of shareholders voted against removing Pindar as chair, compared to 28% for removing him.
Shareholders also voted 58% against appointing Hill as a company director, compared to 42% for appointing him.
Directors at Purplebricks said they recognised a significant proportion of shareholders voted in favour of the two resolutions, even if both were rejected, and that Purplebricks will continue to engage with shareholders to ensure full alignment on strategy, objectives and delivery.
It comes after a difficult trading period for Purplebricks. In the six months that ended October 31, revenue was down 16% to GBP34.5 million from GBP41.3 million a year earlier.
Shares in Purplebricks fell 2.5% to 9.31 pence each in London on Monday afternoon, and are down 61% over the last 12 months and down 98% over the last 5 years.
"Our past performance has not been good enough. But we have a new team, with an agreed plan that is being delivered at pace. The operational changes implemented over the last four months will be clear for all to see at our final results, in terms of a substantially improved cash and profit performance," said Chief Executive Officer Helena Marston.
In November, the Royal Institution of Chartered Surveyors said house prices ground to a halt in October after more than two years of growth, as rising mortgage costs fuelled caution among buyers.
Across the UK, a net balance of 2% of property professionals reported house prices falling rather than rising, the RICS said.
On Friday, a forecast by lender Halifax predicted rising mortgage costs and the cost of living crisis will cause house prices to fall by around 8% next year.
In November, Halifax reported the largest monthly fall in house prices in 14 years. It said the market was rebalancing after years of conditions causing some of the biggest rises in house prices ever recorded, alongside a mini-housing boom fuelled by Covid-19.
On Thursday, the Bank of England raised interest rates to 3.5%, the highest level in 14 years and its ninth rise in a row.
"The housing market will be what it will be in 2023 but we have a value driven customer proposition, right-sized our cost base by GBP17 million, and laid the foundations for a more balanced business with the recent launch of new revenue streams and a plan to grow our lettings business. There is a big opportunity for Purplebricks, and we want the opportunity to deliver it," said Marston.
In December, when announcing its half-year results, Purplebricks said it reiterated its financial 2023 revenue guidance to be between GBP67.5 million and GBP72.5 million, while earnings before interest, tax, depreciation and amortisation would be in line with market consensus.
It also said it expects positive cash generation early on in its financial 2024.
By Greg Rosenvinge, Alliance News reporter
Comments and questions to [email protected]
Copyright 2022 Alliance News Ltd. All Rights Reserved.
Related Shares:
PURP.L