Good morning!
Lots of updates today, including a shocker from Purplebricks (LON:PURP).
- Purplebricks (LON:PURP) - trading update
- Premier Technical Services (LON:PTSG) - statement re: share price movement
- McBride (LON:MCB) - half year report
- Macfarlane (LON:MACF) - final results
- Innovaderma (LON:IDP) - half year report
- Keywords Studios (LON:KWS) - acquisition
Also, please see comment #7 in the thread below by Carcosa, who is something of an expert on Avation (LON:AVAP) and provides us with analysis of its interims. It's not worth my while studying it for you guys when he has already done the work!
Thanks for the comments - and for all your excellent contributions.
Purplebricks (LON:PURP)
- Share price: 123p (-25%)
- No. of shares: 303 million
- Market cap: £373 million
Trading update and management changes
The wheels have been coming off this online estate agent's growth story for a while - see its coverage in the SCVR archives.
My point of view on this stock has been straightforward enough: the company hasn't made enough progress in the UK to justify a large international growth spree. Aside from poor numbers in black and white, there have been a few red flags:
- the company's aggressive treatment of negative reviews and the websites which host them
- question marks over how it accounts for revenue
Today's update indicates that the company is struggling in several geographies:
- UK: revenue still expected up 15-20% this year despite a challenging market. The UK CEO leaves after two years in the job.
- Australia: revenues will miss expectations
- USA: revenue will miss expectations. The US CEO leaves after two years in the job.
- Canada: set to meet expectations.
In December, guidance for the year ending April 2019 was reduced. This guidance is now reduced dramatically again (bolding is mine):
As reported at the interim results, the Company updated its revenue guidance for the 2018/19 financial year to £165-175 million under IAS 18. Given the reasons noted above, the Board believes revenue for the current financial year will now be in the £130-140 million range under IFRS…
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