Purplebricks shares (LON:PURP) plunged more than 30 percent on Thursday after the company cut its sales forecasts for the year.
The online real estate agent said that anticipated revenue will ‘not be sufficient to meet expectations’ for the year ahead.
Whilst Purplebricks said revenue would be 15-20% ahead of the year before, the company warned on a challenging trading environment for the UK housing sector, resulting in the cutting of forecasts.
The company also cited “headwinds” in Australia as a further challenge, in the announcement.
In addition, Purplebricks announced the departure of two high-profile executives. Both Lee Wainwright, UK CEO, and Eric Eckardt, US CEO are set to leave the firm.
Whilst Mr Wainwright is leaving for ‘personal reasons’, the company did not disclose the reasons for Mr Eckardt’s departure.
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.”
Shares are currently down -28.24% as of 10:54AM (GMT).
