 fell over 8 percent at midday on Monday, after warning that revenues would be affected by "underlying softness" in the market. ){kind=link}
Shares in online estate agent Purplebricks (LON:PURP) fell over 8 percent at midday on Monday, after warning that revenues would be affected by “underlying softness” in the market.
The company warned that full year figures were likely to be lower than expected, after revenues languished below company consensus due to “adverse weather”. The ‘Beast from the East’ is expected to have a 5 percent impact on the figure for the year.
However in more positive news, the company announced that German media firm Axel Springer had bought a £125 million stake in the online estate agent, in order to fund a rollout in the US and support entry into new markets.
Axel Springer now holds a 11.5 per cent stake in Purplebricks and its president of classified media, Andreas Wiele, has joined the board of the company.
Michael Bruce, chief executive of Purplebricks, said:
“It is fitting that on the cusp of our four year anniversary we continue to push boundaries and challenge conventional thinking.
“The strategic partnership with Axel Springer is ground breaking and will propel Purplebricks further towards our strategic goals and global ambition. We now have the platform, funding and, through Axel Springer’s experience, as well as the appointment of four new leading non-executive directors, the expertise to achieve our vision.”
The Axel Springer announcement did not alleviate investor panic at the drop in revenues, however, and shares are currently trading down 8.11 percent at 286.15 (1332GMT).