Purplebricks chairman increases stake ahead of crunch AGM

Purplebricks’ non-executive chairman has upped his stake in the beleaguered online agent ahead of the company’s annual general meeting (AGM) next month.

A stock market update yesterday showed Paul Pindar purchased 1.5m of ordinary shares worth £0.01 each in the company.

Following the purchase, Paul Pindar and Sharon Pindar, a person closely associated, together hold 15,618,056 shares in Purplebricks representing 5.09% of the total issued share capital. 

It comes after an activist investor upped its stake and called for the online agent’s chairman to resign last month.

Adam Smith has been building up his holding in Purplebricks to 5%, the point at which he could call a general meeting on urgent matters affecting the business.

A stockmarket update showed Smith and his investment vehicle Lecram Holdings have increased their stake to 4.18%.

Smith has also written to Purplebricks chairman Paul Pindar to urge him to resign amid the company’s tumbling share price and cash burn, claiming action is need to “restore the credibly of the company with investors.”

The letter called for Pindar to be replaced by someone with “necessary experience and skills to address urgently the company’s continuing cash burn and operating performance with thin residential estate agency sector.”

Many of these issues could come to a head at the online agent’s annual general meeting, which has been confirmed for 14 September.