Purplebricks profit not as good as it seems

Even though it has been transferred to Link Fund Solutions, the Woodford stake still hangs over estate agency Purplebricks (LON:PURP) and a weakening in demand in the UK property market will not help to clear it.

Purplebricks does say that it has maintained its 4% share of the weaker market. The volume of homes sold has reduced in the period. Political and economic uncertainty are putting off house buyers, particularly in south east England.

A higher level of revenues is being generated for each £1 of marketing spend. Management says that this is due to greater efficiency.

On the bright side, Canada, the one successful piece of overseas expansion, has done better than expected.

Pro forma revenues, without the other overseas operations that are being wound down, are likely to be...

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Andrew Hore is the publisher of AIM Journal, which is an online monthly publication covering the Alternative Investment Market.