Purplebricks says unlikely to generate cash in FY24, sale process ongoing (updated)

Purplebricks

09/05/2023 07:35

(Adds details on return to cash generation, background on sale
process)
       May 9 (Reuters) - Purplebricks Group  PURP.L  on Tuesday
said its previous expectation of returning to cash generation in
early financial year 2024 was unlikely, as Britain's biggest
online-only estate agency explores a sale to turn its fortunes
around. 
        Purplebricks had a turbulent 2022 as it struggled with
implementing a new operating model, saw at least three major
management reshuffles and one of its top-10 shareholders -
Lecram Holdings - called for the removal of Paul Pindar as
chairman.
    In February, the firm said its board had recognised that the
potential of the group may be better realised under an
"alternative ownership structure" and had decided to conduct a
strategic review. That review would include a formal sale
process, the company said in March.
  
        The firm on Tuesday said it expects to have finished the
financial year ended April 30 in-line with its expectations, and
that a small number of parties remain in discussions with the
group regarding the sale of some or all of its business and
assets.
  

 (Reporting by Radhika Anilkumar and Eva Mathews in Bengaluru;
Editing by Savio D'Souza and Eileen Soreng)
 ((Radhika.Anilkumar@thomsonreuters.com;))