In its latest Trading Upate Purplebricks Group Plc has revised its revenue guidance downwards and announced the departure of two key executives.
Purplebricks has previously forecast revenue of £165-175m for the 2018/19 financial year. However, the latest update said that the Board believes revenue will now be in the £130-140m range.
The update said revenue was likely to fall short of expectations in the US and Australia, while the Canada business was ‘on track’ and revenue growth of 15-20% in the UK was expected despite a challenging market.
The company announced that Lee Wainwright, UK CEO, and Eric Eckardt, US CEO, will shortly be leaving the business. They will be replaced by interim CEO Vic Darvey in the UK and Group CEO Michael Bruce in the US.
Michael Bruce, CEO and co-founder, said: “Although there are macro and industry headwinds across markets we are well placed to capitalise on the significant opportunity for growth that exists in each country, albeit not entirely as we would have wanted before our year end. The UK is leading the way with continued profitable growth and a strategy to deliver greater success. I am also excited to be taking the reins of the US business. The team in Australia are building on the changes they implemented late last year and Canada is delivering on plan and expectations. The Board remains confident of the long-term growth potential of the business and the opportunity to deliver substantial value for shareholders.”
The latest update is pretty much in line with other recent Purplebricks’ announcements, ie. progress in the UK business is proving illusive elsewhere. What relevance the management reshuffle has to all this isn’t exactly clear as yet.