Purplebricks Group PLC - Solihull, West Midlands-based estate agent - Will need to take a provision of between GBP2 million and GBP9 million for expected claims resulting from an issue with how it has been communicating with tenants on behalf of landlords within its lettings management business. While it finalises the amount of provision, Purplebricks has delayed its interim results, which had been scheduled for Tuesday. The company says the communication issue is related to deposit registrations. "Further enquiries into this matter are currently being conducted and the communications process is now being corrected," Purplebricks says, adding it will make an announcement about a new date for its results "as soon as practical".
Last month, Purplebricks said the six-month period to October 31 had been "challenging", following a strong period for the UK housing market buoyed by the stamp duty holiday. It said adjusted earnings before interest, tax, depreciation and amortization would be below previous guidance.
Current stock price: 25.40 pence, down 20% on Monday
Year-to-date change: down 76%
By Tom Waite; thomaslwaite@alliancenews.com
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