PURP.L Share News (PURP)

(Sharecast News) - Estate agent Purplebricks said on Tuesday that it will move to a fully employed model for its field sales agents, with the transition set to commence immediately.
Purplebricks now believes that moving to a fully employed model will ensure that it can scale up quickly in order to meet consumer demand and, with the company already eyeing up "over 100 of the best agents in the industry".

The London-listed firm stated having ownership over recruitment, training and management of "a unified high-performing team" will support the delivery of "a consistently high level of service" and would also come with "an enhanced opportunity to increase ancillary revenues".

Purplebricks said its newly employed sales team would enjoy "a highly incentivised package" with the ability to work flexibly and remotely, in keeping with its "entrepreneurial ethos".

As a result of the move to a fully employed model, Purplebricks expects to incur exceptional non-recurring costs of roughly £3.0-4.0m in the 2022 financial year, with ongoing administration costs expected to be around £1.0m higher in FY22.

Purplebricks also highlighted that it was committed to driving market share growth, with a "significant increased investment in a new marketing campaign" later in the year pushing marketing costs approximately £3.0-4.0m above previous guidance.

As of 0920 BST, Purplebricks shares were down 1.34% at 70.15p.