(Alliance News) - Purplebricks Group PLC on Wednesday said it has received a letter from a shareholder requesting a general meeting to vote on replacing its chair, but the online estate agent said the board and its major investors support the incumbent.
Lecram Holdings Ltd said it sent the letter requisitioning the meeting, where it will propose removing Chair Paul Pindar and adding to the board property industry veteran Harry Hill. Lecram said it has a 5.2% stake in Purplebricks.
Hill was chief executive officer of estate agency Countrywide PLC and a founder of FTSE 100-listed real estate portal Rightmove PLC.
Purplebricks said Pindar has the support of both the board and shareholders, including German publisher Axel Springer SE, which has a 26.5% stake.
"The board is firmly of the view that the board changes proposed by the requisition are not in the best interests of the company or its shareholders," the company said.
Purplebricks has had a torrid few years, forcing the company to pull out of both the US and Australia. In its most recent financial year, which ended on April 30, Purplebricks swung to a pretax loss of GBP34.8 million from a profit of GBP3.6 million the year before, as revenue dropped 23%.
"A clear plan was set out to improve business performance, return to positive cash flow and profitability, and build a scalable business model," Purplebricks said.
"The board considers that Lecram Holdings Ltd's decision to lodge the requisition is disruptive when the company and its executive team are focused on delivery of this turnaround plan."
Purplebricks shares were up 0.7% at 11.63 pence in London on Wednesday afternoon. The stock is down 64% in the past 12 months. In early 2018, it traded as high as 460p.
By Tom Waite; thomaslwaite@alliancenews.com
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