The beleaguered online agent has urged shareholders to reject the resolutions, describing them as “disruptive” and an “unnecessary interruption to delivery of the company’s plan.”
In an 18-page letter to shareholders, Purplebricks highlights that it has the support of a number of shareholders, including Axel Springer, which it said has pledged to vote against the moves.
It argues that the company has a plan to improve business performance, return to positive cash flow and profitability, and build a scalable business model.
This includes £13m of cost cutting, improved training and price changes.
Purplebricks highlighted that the board now has experienced property professionals including former LSL and Leaders Romans Group executive Adrian Gill and ex-Zoopla chief marketing officer Gareth Helm.
The letter also argues that Pindar has a “long and distinguished track record as a director of public companies,” including as chief executive of Capita.
It said: “Pindar has been chairman of Purplebricks since 2015, shortly after its launch, and as such has accrued significant experience of the Company’s operations and business model, including the factors that enabled the Company to deliver revenue of over £90 million in 2021.
“Paul has recently overseen the recruitment of a refreshed board and development of the plan which the Board continues to believe will return the company to profitability and growth under his leadership.”
Purplebricks urged shareholders to turn up and vote, adding: “The company is now moving to a period of greater stability and further disruption may put at risk the results envisaged by the plan.
“Every vote that is not cast will enhance Lecram’s prospects of success. Do not, through inaction, allow the requisitioned resolutions to pass.”
Lecram Holdings yesterday hit out at the shareholder circular posted by Purplebricks, claiming it provides a misleading impression of the shareholder’s views and omits certain information about its directors.
A line in the Purplebricks letter quotes Lecram as stating that it was “encouraged by the plans of the new CEO and CFO to turn things around.”
But Lecram said this was selective as it actually said: “While we are encouraged by the plans of the new CEO and CFO to turn things around and stem the cash bleed, we wonder why it has taken so long to act and are concerned that the lack of market experience at board level.”
Lecram added: “Our comments highlighted the concern about execution risk while the chairman that led Purplebricks into this dire situation is still at the helm.”
The investor also notes that the biography of Pindar misses out “a critical element of his career details,” namely his chairmanship of Eve Sleep, a quoted ‘disruptor’ of the mattress market where shareholder value fell under his watch and which recently went into administration.
The letter from shareholders is signed by Simon Downing, who is described as the senior independent director of Purplebricks, but Lecram said it does not point out that he is also a director of the Pindar family investment business, Literacy Capital.
Lecram said in a statement: “(Purplebricks) has given no further detail on its turnaround plan. There is no evidence that Purplebricks’ market position is improving, no evidence that the cash bleed is being stemmed, and the falling share price, which implies the business is worth no more than the cash on its balance sheet, shows the market has lost confidence in the leadership of the company.
“It is clearly time for a change at the top at Purplebricks before it is too late. We strongly urge independent shareholders to vote in favour of both resolutions – to remove Pindar and to appoint Harry Hill to the board, with the view to him becoming chairman.”
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They should sell their shares for ten pence each and get out quick!
...are concerned that the lack of market experience at board level"
Not so concerned that you have done anything about it in the last 3 years and very recently approved a new CEO with none.
Paul Pindar is nothing but a kind, generous man and the only person left who props that company up, without him will be a big mistake, like sacking off the best territory owners and LPE's.
"The beleaguered online agent has urged shareholders to reject the resolutions, describing them as “disruptive” and an “unnecessary interruption to delivery of the company’s plan.”
Hahaha! The 'disruptor' is complaining about disruption.
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