Member Info for cyberduck

>Wouldn't be surprised to see PB buy Emoov purely to prevent the bad press

Good call perhaps! I think Sain had the same thoughts.

Good publicity if the do.

https://www.estateagenttoday.co.uk/breaking-news/2018/12/purplebricks-may-be-about-to-help-out-emoovs-stranded-clients

>I have to declare an interest - as I do have a holding of Inland Homes.... not as big as my Telford holding, mind.... but I wouldn't want to be accused of ramping

I too have an interest in INL and not trying to move people out of TEF. TEF my biggest holding.

Just love the way INL try and squeeze every penny out of their assets though. Not the best margins on their housebuilding I admit but they build lower priced homes in the SE and don't seem to have too many problem selling.They now have what looks like a separate business for providing Councils with temporary emergency housing. Stick the units on the back of a lorry when the proper planning permission comes through (presumably after the tenants have moved out).

https://hugghomes.co.uk/what-is-hugg/

>We just need to keep the faith

I'm not thinking of selling my shares if that's what you mean :)

In fact my original post about a potential re-valuation once BTR is ramped up was meant to be encouraging to those who might be a feeling a bit down about the SP.

I would add that there's a responsibility on Directors to ensure a high valuation as an undervaluation can attract takeover interest. I've seen many takeovers where an undervalued company gets sold for 10% above the first offer.

>Which is never likely to happen as our BOD’S are thoroughly decent human beings who are not motivated by individual wealth and as such the share price will never be that important to them.

Yes but they are supposed to act in the interest of shareholders. I'm not proposing anything misleading. Just sell the company on its merits a bit more.

From what I understand they are a bit more positive at AGM's about the company's prospects but that doesn't make it out to the investor community.

"The demise of Emoov, Tepilo and lettings platform Urban raises question marks over the long-term viability of online agencies according to some industry observers."

I never understand why they lump PB in with all the online/hybrid agents making a loss in the UK. PB have reported being in profit in the UK and have just reported a 20% increase in revenue for H1. I suppose it's possible that marketing and admin. costs have increased dramatically but unless that's the case and things continue as they have been for PB they are in no danger.

Do your own research.

>Where does this leave Bricks?

Hard to say.

I imagine traditional agents will be pointing out the risks of "pay anyway" at those ever so important valuations.

On the positive side for shareholders, you'd expect PB to pick up some of those who would have chosen Tepilo or Emoov had they still been around. About half a percent market share I'd say up for grabs and in PB's case any increase goes straight to the bottom line (presuming they are still operating at a profit in the UK).

But you also have to wonder why people were choosing Emoov over Bricks in the first place. Perhaps they didn't like something about PB and will choose YOPA. Perhaps they searched online and found Emoov who did have good organic positions in Google in contrast to PB!

Or perhaps more people will look at the small Online Agents as a risk and choose PB. I know when I chose PB it was because they clearly had money behind them in order to afford those TV ads.

Talking about TEF trading on 4 x BV.

Has anybody heard of a company called Watkin Jones? I'm not proposing them as an investment but they are developers of Student Accomodation and BTR. They are currently trading at a p/e of about 13.5. Nearly 3 times what TEF are trading at. Their performance is nothing spectacular and I've just looked back at an email from Strictly going back to January 2018 and they were then trading at 5 times BV. Haven't checked their BV but their SP is pretty similar to what it was in January.

There's something investors like about them and I'm wondering if the same could be said about TEF once they ramp up the BTR side of things?

Sometimes the value investors put on you is more about selling yourself rather than actual performance. Something TEF need to improve on?

>a unilateral stop followed by a referendum is now a viable option.

I just can't get my head around that. It's like saying the last referendum doesn't count and we're going to keep having them. I can understand a referendum on whether to accept the current deal or not but not one to review the last decision. I've heard Tony Blair saying it's been 2 years now so we need another one but we can argue that every 2 years. My wife has 100 pairs of shoes but she still presents a valid argument why she needs another particular pair of shoes.

Are we not thinking too short term if we think the problem that the country is divided on this just goes away? I think we either accept the referendum result and review in 10 years or need to have a new referendum every couple of years. Nobody will set up business over here and will look to get away if there's no stability. If it drags on much longer with more negotiations with the EU we could slip into recession because nobody will spend or make buisness decisions.

Hi JVSOZ,

I could be wrong but as a director you have a responsibility to shareholders to quickly act if you believe the company is insolvent. One of the things I've seen RQ say is that he'd been promised further investment but that it fell through. I think if this is the case then he didn't do anything wrong or at least it's a grey area.

Steph,

Was immigration not one of the main reasons why people voted for Brexit? That and the thought of people not liking foreigners telling us what to do.

It sounds to me that with a deal nobody is going to be completely happy which of course is one of the criticisms (disingenuous in my eyes - that's what happens when you compromise when making deals) of the current deal. Are you suggesting that the EU would give us a deal where we have complete control apart from agreeing to allow EU citizens in? Then MP's would decide that this is what the electorate wanted and accept it?

There seems something fundamentally wrong to me of going back to the people and asking them if they want to stay in the EU. Surely if we did that and the result was close would that not set us up for a lifetime of uncertainty with a referendum needed every couple of years?

What are the chances of going to the people and just asking them whether they accept the current deal or not?

And that is presumably after paying about 50p in dividends in the meantime.

https://www.proactiveinvestors.co.uk/companies/news/210124/telford-homes-posts-in-line-interim-results-but-brokers-still-trim-estimates-targets-on-slowing-london-market-210124.html

https://www.thisismoney.co.uk/money/markets/article-6437117/Property-developer-firm-Telford-Homes-presses-ahead-focus-Londons-build-rent-market.html

https://www.telegraph.co.uk/business/2018/11/28/telford-homes-hails-shift-rental-properties-profits-rise-despite/

https://www.morningstar.co.uk/uk/news/AN_1543404700590281900/telford-homes-interim-revenue-and-profit-surge-despite-uncertainty.aspx

https://www.standard.co.uk/business/telford-homes-sales-flagging-on-fears-over-leave-a4002516.html

Thanks for following up with TEF Steph.

I've been watching activity and I get the feeling they are concentrating on Manhatten, Liberty & Bow Garden Square. I've seen 15 reservations since the trading update and I'm regularly receiving marketing literature for those 3 developments.

I'm pretty sure I've not seen any reservations at Brookmans, City North, New Garden Quarter or Calders Wharf since the trading update in October.

Steph,

The way I understand it is that once an open market property completes all costs and income is taken into account and the profit applies to the FY that it completes in. I'm no accountant and perhaps some of the costs are treated separately but my thinking is that the idea is that the bulk of the costs are grouped with the income from sale whenever they occurred.

For BTR it is completely different. There can be a profit element at outset on the land sale. Also profits can be booked depending on the development contract and TEF say things like "This transaction is accounted for as a construction contract and the Group will recognise revenue and profit on a percentage of completion basis over the life of the development" and "has improved on original forecasts due primarily to initial profit recognition on the PRS sale announced in February 2016" and "The sale to M&G is on a forward funded basis and will comprise an initial land payment followed by regular payments throughout the construction period"

Steph,

From TEF's 2008 results...

“The International Financial Reporting Interpretations Committee (IFRIC) has recently concluded lengthy deliberations on the accounting treatment for real estate sales. Their proposed amendment to the accounting required under IFRS will mean that Telford Homes will have to account for revenue and profit from open market private sales on legal completion of each property."

https://www.ft.com/video/5be8b798-7ab8-4107-8029-2b4a9737cbb5

Yes, that's what I meant to say :)

Steph, the profit for each unit is accounted for on exchange of contract for open market sales. A rough estimate is a 25% profit margin although Bow Gardens is a shared profit and I'm not sure how that share is split. They need to sell some of those Penthouses and £700K+ properties.

I doubt there's going to be much interest now until the New Year and I guess it takes about 30 days to complete after offer accepted. Still a lot to do.