Purplebricks coup attempt set to happen just before Christmas

Purplebricks’ board has announced that a general meeting of shareholders will be held on December 19 - and it involves a bid to oust the current chairman and replace him with an industry veteran. 

The move follows a long campaign by activist shareholders to get rid of current chairman Paul Pinder and replace him with Harry Hill, founder of both the Countrywide agency chain and of Rightmove.

The activists are in Lecram Holdings Limited, an investor which has just over five per cent of the troubled agency’s shares.

A flavour of what will happen at the meeting was contained in a letter to shareholders calling for the general meeting, from Adam C Smith of Lecram.

His letter said: “I believe strongly that a new Chairman is required now to restore the Company’s credibility with all its stakeholders and to support its executive management team through the challenges which they will face in the medium term.”

Hill spent 20 years building up Countrywide, which was sold for £1 billion, and in his time there helped found Rightmove, which now has a market value of over £4 billion.

Smith added: “Harry is an extremely experienced director with an intimate understanding of the UK property market. He has an excellent and relevant track record of performance which is exactly what Purplebricks needs right now.”

The latest statement from Purplebricks, accepting the need for the general meeting and announcing its date, includes the two main items of business it will consider, in the form of so-called ‘ordinary resolutions’:

- A resolution to remove Paul Pindar as a director of the company;

- A resolution to appoint Harry Hill as a director of the company.

The meeting is in London at 10am on December 19 and the results  of the resolution votes will be announced later that day.

The attempt to replace Pindar is the latest attempt for the agency to shed its past record of financial failure. Regulatory failings, notably the failure to handle tenant and landlord deposits appropriately for an unspecified period of time, have contributed to the share price collapsing from an all-time high in 2017 of 525p to under 10p this week. 

At the time that the annual meeting was requested by Lecram, Purplebricks said: “Within the Company's FY22 results announcement, published on 2 August 2022, a clear plan was set out to improve business performance, return to positive cash flow and profitability, and build a scalable business model.

“The board considers that Lecram Holdings Limited's decision to lodge the requisition is disruptive when the company and its executive team are focused on delivery of this turnaround plan.

“The board recognises that having the right blend of skills and capabilities within the Board is beneficial to support the executive team and is key to delivering the performance improvement.”