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£5.5m is gross cash in bank anticipated on completion. Then it goes on to say: "It is currently anticipated that the Net Cash Proceeds will be approximately £2 million." That's caveated and subject to adjustment, worth reading the whole RNS for details.
The RNS said maximum of £5.5m so known costs must have already been factored in to arrive at that figure. If maximum is achieved that equates to around 1.6p per share so a potential of doubling your money from the current SP. If known costs were not factored in (and these can’t be zero) then the stated maximum could never be achieved. If I’m missing something and my logic is flawed please correct me
Not one single fresh listing has appeared on ZPL today which isnt good I am sure that is not the case but maybe they have asked for money in advance before listing.?
You can't blame them
Rickmeister
Exactly they have kept quiet about Marston's golden goodbye and there will be greedy professional hands
looking to clean out the bran tub as they head out the door
One thing is for sure Bricks are a class act in making money disappear.
The 17th Feb RNS made no mention in the Sttaartegic Review that they had failed to have in place a new contract with thee pay later provider expiring in April This should have taken place in 2022
A material piece of information withheld Invesyors treated like mushrooms
From that moment on they were doomed and it was a fire sale and shareholder value wiped .They left no time to negotiate a complex deal of this nature s with a 3rd party
All Strike had to do was walk this over the line to pay zero
Sain. Add to the costs you mention directors remuneration contracts, redundancy costs etc and the supposed £5m will be further eroded.
Any distribution of money to shareholders is expected Q1 2024
Don't forget they are still losing money so that is not a stopped clock l hat £5n is going to be mightily thinned
Yesterday was a poor day for listings and is unlikley to get any better despite the news. Redundancies are all set and who wants to instrict a LPA knowing they might no longer be on the premises bery long to handle a sale?
"Speaking to Estate Agent Today, Mitchell said in agency terms, the companies have exchanged but not yet completed so there was still much to be decided.
Asked if one brand could be subsumed into the other, he said this was a possibility but nothing has been decided.
He said both brands will be run separately in the early days and declined to comment on any changes to Purplebricks' fee model given that Strike doesn't charge vendors for listings."
It sounds as if the deal is heavily conditioned with further due diligence required which all takes time and further losses eating into the sum set aside as the weeks fly by
Agreed! There will be costs though?
It would appear that with only 303838246 shares in issue the share price if 5 million is indeed the figure to be distributed should be closer to 1.6p
Crikey mag, equity players ought to be grateful
for the limited liability laws which protect us from being pursued for financial failures in those companies we invest in, gather wealth in sp increase and bank dividends from.
We cannot have it both ways. FYI I have never held PURP in any form but fascinated by the psychological and social factors in what we do.
Online only agencies have never and will never be a sustainable model, they simply cannot provide the required level of service for the amount they charge for a property transaction to keep consumers happy. There is no such thing as a free lunch, and if there is, it normally tastes like sh*t. I feel for anyone that got caught out with this stock. Rest in peace purple bricks, hatched, easy properly , yopa, strike. GLA
Read here (despite all BS form a few)
As per RNS - Company's cash balance on Completion (up to a maximum of £5.5 million) being retained by the Company with the intention that the net cash proceeds after the deduction of certain costs and expenses to meet the excluded liabilities (the "Net Cash Proceeds"*) are distributed to Shareholders
Right now you only paying for £2M Rock bottom and worst case scenario , buy and hold and you will be rewarded a little now.
There could be other bidders, a buyers is accumulating, and there needs to be s/h vote etc.
Shorts need to cover too/ can see major squeeze here now since the first drop a few weeks ago.
over and out,
Unfortunately the stock markets in the UK are full of corruption and no better than the third world
Pick a third world country to move to. India?
What the hell are these people talking about shorts on
Read Simon Cawkswells book Evils good and educate yourselves.
There is and will be demand for online agents, what went wrong for Purple is that they expanded too fast .Instead of building a model that was a sort of mirror image of traditional agents, they instead went for quantity without the quality .
They don't need to...
Customers will lose confidence in the purplebricks model and move back to traditional agents
Evening
Firstly, bad news and I empathise greatly but may I ask this question. Did anyone hold post the value destruction RNS on May 10? The SP was around 1.9p at that time.
If you did hold was it a/ in the hope of a reversal in company fortune or b/ not wanting to let the side down ie your fellow private investors.
There is no intention to try and wind anyone up, sometimes that is appropriate but not in this case. Thanks v much NH.
Helena Marston
"However, the Strategic Review and Formal Sale Process created increased uncertainty in the business resulting in a need to draw this process to conclusion, which has also been accentuated by the timing of expiry of our relationship which lets us provide pay later solution."
You really couldn't make this up.They were doomed .
The whole cashflow model worked on the basis that fees were factored with a 3rd party procesesor and a known fact that arrangement was coming to an end in April 2023
So it was incumbent on them last year to have put in place a new contract on expiry either a renewed one with existing provider or a new one elsewhere
Having failed to do either they were stuffed . The business should have been put up for sale a long time before March as out only gave 2 mnonths to do a deal before expiry -An impossible task
Shareholders burned completely
Yes it’s me Laura, how did you know? You clever chap
Oh I'm just here for a welfare check on a "Laura".
Do we have a "Laura" here?
"Laura?"
It has to go to a vote, it wouldn’t surprise if a party has been building a stake. 20% plus of the free float traded today
You still think there is a bidding process?
Sit down and let me tell you about the day's events...
I could see a high street agent bidding at this level, take 2/3 % of the uk market share, disrupt strikes momentum and have a huge historical database to mine and some hefty retained losses
The Proposed Sale results in the Company's cash balance on Completion (up to a maximum of £5.5 million) being retained by the Company with the intention that the net cash proceeds after the deduction of certain costs and expenses to meet the excluded liabilities (the "Net Cash Proceeds"*) are distributed to Shareholders
You can bet those costs and expenses will reduce that cash balance for distribution substantially if not completely
Unfortunately the stock markets in the UK are full of corruption and no better than the third world