Online-only estate agency Purplebricks’ losses have widened in the past six months, despite the CEO’s turnaround plans.
Revenue dropped 16 per cent to £34.5m in the six months to the end of October, while gross profit plunged more than a third to £16.2m.
Operating losses also grew by five per cent to £11.7m.
But CEO Helena Marston assured that the turnaround plan is “being delivered at pace, with the financial benefits starting to come through”.
She said the company has grown its annualised savings by £4m, to a total of £13m.
“I am confident that the progress we are making and the initiatives we are implementing to drive better performance in the field, together with the additional cost actions to ensure we are a leaner, more efficient organisation, underpin our full year expectations including a return to positive cash generation in early FY24,” she said in a statement.
Bosses expect the company’s full year revenue to fall between £67.5m and £72.5m.
Purplebricks shareholder Lecram Holdings took the lagging improvements as an opportunity to once again attempt to oust its chairman Paul Pindar.
“Purplebricks’ figures – showing higher operating losses and the company burning £2m of cash per month – confirm our worst fears that nothing is improving,” said Lecram.
“We are entering one of the worst housing market conditions in a generation, yet the leadership seems to have an overly optimistic view of prospects. Shareholders can’t afford to wait any longer while this business runs out of money, they need to act and act quickly to change the chairman if there is any hope of salvaging value for all investors.”
Lecram, which holds a 5.16 per cent stake in the digital agent, called for the chairman’s replacement just weeks ago.
The shareholder called for Harry Douglas Hill, the founder of online property site Rightmove, to be appointed a director to eventually take over the helm as chairman.
Purplebricks confirmed at the beginning of November that it had received an order from Lecram to host a general meeting, in which shareholders would be asked to consider removing chairman Paul Pindar as a director of the company.
A meeting to propose the removal of Pindar as chairman and the appointment of Harry Hill, will take place on 19 December.