Solihull-headquartered online estate agent Purplebricks has said it “firmly refutes” the findings of research published by a City consultancy in a market update following a fall in its share price.
In an update to the London Stock Exchange, Purplebricks said it “knows of no reason” for the share price fall other than the research published by Jefferies International on Thursday 1 February.
The statement said: “Purplebricks contests the findings of the Jefferies research report.
“Jefferies estimated Purplebricks’ completion rate is based on a single month’s data and does not include properties that have completed but have yet to be uploaded to the Land Registry, which can take several months.
“Equally the research does not take into account properties which have exchanged, have reached sold subject to contract (SSTC), or are on marketing breaks.
“Purplebricks reiterates its most recently published sales conversion rate from instruction to sale agreed of 78 per cent, which it believes more accurately reflects its sales performance, although this figure itself does not include those properties in the sales pipeline at the end of the period which will in due course sell.
“Purplebricks firmly refutes the criticism in the research note of its revenue recognition policy and stands behind both the fully audited results and the accounting policy itself.”
The company added that it had 6,160 instructions in January, up 66 per cent year-on-year and agreed sales on 4,618 properties during the month.