Zeus Capital Research Director Robin Savage caught up with DirectorsTalk to discuss Purplebricks Group PLC (LON:PURP)
Q1: Now Purplebricks’ AGM statements reveals that recruitment of local property experts is ahead of plan, is this a surprise?
A1: Well not really in the sense that the management team have had a record of beating their plans over the last few years and that the IPO of Purplebricks Group in December last year I think has been a great recruiting sergeant for them.
Q2: Instructions are up 121% year on year, now this seems quite remarkable when other estate agents are talking about a fall in activity, how is Purplebricks able to grow strongly despite the slowdown in the UK housing market?
A2: Well it’s really a factor of the growth in the local property experts, they’ve been recruiting them, training them and putting them in a position. Over the last couple of months the number of local property experts has more than doubled year on year and it’s the increased coverage in the UK which has been enable it to grow its instructions.
Q3: Now Purplebricks Australia has been trading for 2 weeks now, how long will it take for this division to make a material contribution to the group?
A3: It’s taken Purplebricks a couple of years in the UK to actually established itself as one of the leading UK estate agents and I think it’ll take a couple of years in Australia. Early indications are that the Australian market is an attractive market and Purplebricks has got 25 local property experts in Melbourne and Brisbane and I think in about a year’s time I think we’ll see quite a significant presence in those 2 locations and hopefully progress in more locations.