Purplebricks Crunch Day - chairman survives key vote

Purplebricks chairman Paul Pindar has survived a challenge from a rebel investor - but shareholders appear split. 

A company general meeting - held this morning at the request of rebels in Lacram Holdings - saw 28.2 per cent backing the removal of Pindar while 71.7 per cent were opposed.

Adam Smith of Lecram put forward a additional motion to appoint industry veteran Harry Hill as a company director was defeated with 58 per cent against.

In a statement issued after the vote Purplebricks said: “The directors acknowledge that whilst both votes were rejected, there was a significant proportion of shareholders that voted in their favour….[The directors] will explain any different action it will take as a result of the vote at its full year results.”

Just 10 days ago Purplebricks released some disappointing figures for shareholders, adding in that it will increase its annual cost savings target from £13m to £17m and make redundancies across the business, while simultaneously diversifying revenue streams after recording a £42m loss in the year to the end of April. 

This so-called “turnaround plan” from chief executive Helena Marston includes the launch of an in-house mortgage advice division.

Lecram was not impressed with the proposal, stating:  “Purplebricks’ figures – showing higher operating losses and the company burning £2m of cash per month – confirm our worst fears that nothing is improving. We are entering one of the worst housing market conditions in a generation, yet the leadership seems to have an overly optimistic view of prospects. Shareholders can’t afford to wait any longer while this business runs out of money, they need to act and act quickly to change the chairman if there is any hope of salvaging value for all investors.”