Activist investors calls on Purplebricks chair to quit - report

11th Jul 2022 12:20

(Sharecast News) - A shareholder in Purplebricks has called for the immediate resignation of Paul Pindar, the beleaguered firm's chair, it was reported on Monday.

The online-only estate agency debuted on AIM in 2015. Since then, however, the stock has lost 85% on the back of a series of profit warnings. The firm was further rocked late last year after discovering a "process issue" in its letting division, and earlier this year swung to a half-year loss, hit by the lack of new homes coming to market.

Lecram Holdings, which is the investment vehicle of Adam Smith, has built up a 4.2% holding in the firm, and according to The Times, has now written to Pindar insisting "urgent action is now essential" if the company is to restore its credibility with investors.

Pindar, a former chief executive of outsourcing giant Capita, has been non-executive chair since 2015. But Lecram argued that he should step down in favour of a someone with the "necessary experience and skills to address urgently the company's continuing cash burn and operating performance within the residential estate agency sector", the newspaper reported.

A Purplebricks spokesperson told The Times: "We sought to meet with Lecram Holdings to discuss their concerns. They declined. It's disappointing that they chose to go to the media instead, rather than engage with us."

As at 1215 BST, shares in the firm were down 1% at 14.66p.

Purplebricks was due to announce full-year results on Tuesday, but publication has been delayed until the first week of August after its auditor requested more time to assess the new processes and controls introduced since the last audit.