Purplebricks sold to rival Strike for £1

Purplebricks has announced it has reached an agreement to offload its business to rival Strike in a deal worth £1. The deal for substantially all of its trading business and assets to Strike will see up to £5.5m be retained by the company to be distributed to its shareholders. The deal also marks the completion of the company's Strategic Review which it launched on 17 February 2023 after its turnaround plans failed to bear fruit. Launched in 2014, Purplebricks enjoyed a bright start as an online disruptor in the property market with its share price peaking at as much as 514.5p per share back in 2017. However, a decline in demand for fixed fees and a failed attempt at international expansion led to a downturn in its performance. Earlier this month Purplebricks revealed it was “unlikely” to return to cash generation in FY24 after it revealed instruction levels did not increase through Q4 of FY23 as previously anticipated. Helena Marston, CEO of Purplebricks, said: “When I became CEO 12 months ago, my focus was a wholesale raising of standards within the business and to chart a course towards positive cash generation. This included delivering £21m of cost savings, stabilising lettings, new revenue streams, raising our prices and much improved financial transparency and control. “We have achieved many of these goals, but my view and that of the board in February was that we would be better placed to realise our full potential under private ownership. However, the Strategic Review and Formal Sale Process created increased uncertainty in the business resulting in a need to draw this process to conclusion, which has also been accentuated by the timing of expiry of our relationship which lets us provide pay later solution.” She added: “Taking the actions we did has allowed us to secure a solvent outcome, which protects the future of the business and the Purplebricks consumer driven brand, alongside the benefits of further investment. It has been a challenging and uncertain time but the passion and commitment of our people has been tremendous and I sincerely wish everyone the very best for the future." Sir Charles Dunstone, partner at Freston Ventures (Joint Major Shareholder of Strike), said: “We remain committed to the online model, which offers customers a much better experience at a far lower cost. This is a positive outcome for anyone looking to sell their home and save money doing so. Purplebricks has dramatically changed the industry by driving down the cost of estate agency and we aim to combine its significant brand recognition with an even more disruptive business model. “In bringing together the two brands, we will supercharge Strike’s mission to democratise house selling by empowering customers to have more control over a process that has barely changed for 200 years. At Freston Ventures we are focused on building household brands that are trusted by consumers across the UK. We believe there is a better way to sell your house and through this deal, we are developing the market-leading brand to deliver it.”

Purplebricks sold to rival Strike for £1

Earlier this month Purplebricks revealed it was ‘unlikely’ to return to cash generation in FY24 after it revealed instruction levels did not increase through Q4 of FY23 as previously anticipated

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