Purplebricks Group Plc (LON:PURP) is the topic of discussion when Mike Foster, Analyst at Hardman & Co caught up with DirectorsTalk. Mike talks about the one key driver, post brexit, risks, losses, the upside, Australia, LPE’s and the ‘engine’, the cash flow profile, free float issue and how he values these shares.
Purplebricks Group Plc is the leading next generation estate agency in the UK that combines highly experienced and professional Local Property Experts and an innovative use of technology to help make the process of selling, buying or letting so much more convenient, transparent and cost effective. The company is transforming the way people perceive estate agents and estate agency. PURP is not an online estate agent, it is a hybrid estate agent that has a growing number of LPEs (165 as at 18 November 2015). The LPEs have detailed knowledge of their respective areas, visit the properties and provide valuations. Once instructed the LPEs provide support, advice and assistance throughout the sales process and customers can speak to an expert 24 hours a day. The technology enables interaction 24 hours a day. Approximately 70% of Purplebricks’ customer traffic happens when traditional agents are closed. Customers can instantly know what is happening with their property, they can book valuations, arrange viewings, see feedback from viewings, offers can be made and sales can be agreed, customers can get performance reports and can contact the company 24 hours per day.