Purplebricks shares hit new low following crunch vote 

Purplebricks’ share price hit a new low of 9.02p yesterday despite its chairman Paul Pindar surviving a crunch vote to oust him.

Lecram Holdings, which has a 5% stake in the online agent, had demanded a meeting to call for Pindar to be replaced by industry stalwart Harry Hill.

The meeting was held yesterday morning and while 28.2% backed removing Pindar, 71.7% voted against the motion.

Just 41.8% backed appointing Hill as chair, with 58.2% opposed.

Purplebricks acknowledged in response that while both votes were rejected, there was a significant proportion of shareholders that voted in their favour.

It said: “The directors will continue to engage with shareholders to ensure there is full alignment on the strategy, objectives and most importantly its delivery and will explain any different action it will take as a result of the vote at its full year results.”

The beleaguered brand’s share price fell to 9.31p ahead of the vote yesterday morning and fell to a low of 9.02p in the aftermath before closing at 9.27p. 

Analyst David Reynolds of broker firm Davy said the result was “entirely predictable” but added that Lecram Holdings has at least shone a spotlight on how the online agent is run.

He told Estate Agent Today: “I don’t think Lecram expected to win. I think they were wanting to bring this call for change into the open and to make their point.

“From my perspective, Purplebricks has failed miserably over the past half a decade under Pindar’s chairmanship with a background of a fairly benign housing market and that will change.”

Reynolds predicted that Purplebricks will find things more difficult next year as sellers seek safety and may be more reluctant to pay upfront to sell their home.

He said Purplebricks will need to convince shareholders that it can boost market share and its credibility, otherwise Lecram will be back.

Lecram Holdings said in a statement following the vote result: “Nearly 30% of shareholders that voted, and a majority of independent shareholders not represented on the board, have supported our motion to remove Paul Pindar as chairman. 

“We note the company has recognised the level of feeling among investors and it should draw the appropriate conclusion. There is also considerable support for bringing Harry Hill, who is both experienced in the sector and independent, onto the board.”