Becoming Public In December 2015, The Guardian reported that Purplebricks was set for flotation, and would début on London's Alternative Investment Market on 17 December, with an anticipated valuation of £240 million. In December 2016, it was reported that Purplebricks had made its first profit of £300,000. In the U.K., profit has risen to £5.7 million in the first half of the 2019 financial reporting period. International Expansion Purplebricks has expanded internationally. In August 2016 it launched in Australia, and in September 2017, Purplebricks was officially launched in the US. In 2018, the company purchased DuProprio, a Canadian real estate company that offers commission-free real estate services, for $51 million. They also launched in Germany that year, as part of a joint venture with Axel Springer. They bought a 25.9% stake in German online estate agency, Homeday. International Financial Losses In May 2019, Purplebricks vowed to shut down operations in Australia due to lack of profitability, after reporting an $18m interim loss for the six months to October. This came days after the CEO, Michael Bruce was laid off after disagreements with Paul Pindar over the failed overseas expansion. In July 2019, new CEO Vic Darvey announced that Purplebricks would be shutting down operations in the United States, announcing that operating costs had risen to almost £52.3 million, said that it would focus its attention on Britain and Canada.
Controversy
Purplebricks has faced a variety of criticism since its launch, primarily around the validity of online reviews. In August 2017, Purplebricks was featured on BBC's Watchdog following an investigation into claims of misleading customers. On 14 September 2017, consumer review website Trustpilot issued an open letter clarifying its Purplebricks review policy following allegations concerning the 'validity of reviews of Purplebricks by customers'. In September 2017, the company was accused of 'corporate bullying' following suspension from estate agent review website allAgents.co.uk. Purplebricks threatened the consumer review website with legal action over the publication of negative reviews due to the site's lack of vetting for those leaving reviews. In August 2018, the Australian Financial Review reported troubling management and lacklustre sales issues. In February 2019, Purplebricks' share price dropped sharply after it lowered its US and Australia revenue forecasts. In May 2019, the AFR reported that "increasingly challenging market conditions" and "execution errors" contributed to Purplebricks closure of Australian operations.
