Purplebricks yesterday warned that revenues for the year will be lower than hoped as a German media group bought a £125million stake in the online estate agent.
Shares tumbled 10 per cent, or 31.4p, to 280p after it said turnover was likely to be 5 per cent short of the £98million expected in the City for the year ending April 30.
The warning came as it agreed a deal with Axel Springer that will see the Germans receive shares worth 11.5 per cent of the company.
It means the German firm will become the fourth biggest shareholder after fund manager Neil Woodford, chief executive Michael Bruce, who owns 13.7 per cent of the company, and Old Mutual.
Shares in online estate agency Purplebricks tumbled 10%, or 31.4p, to 280p after it said turnover was likely to be 5% short of the £98m expected in the City for the year ending April 30
Purplebricks, which charges fixed fees instead of the traditional percentage of the sale price, plans to use the cash to boost its technology and to grab more share of the American market.
Axel Springer is worth an estimated £6.1billion and is the owner of the German national newspapers Die Welt and Bild.
Bruce said yesterday: ‘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 online agent’s shares have fallen more than 41 per cent in the past two months as analysts have questioned its sales figures.
Stock Watch – Instem
A contract win sent shares in science IT company Instem soaring yesterday.
The AIM-listed business said that a ‘top five pre-clinical’ research organisation has signed a contract extension to use its Send platform, which allows a more efficient review of information.
The contract is worth more than £350,000.
Twenty-five firms wanted to sign up to the platform in the two months to February 28.
Shares rocketed 19.4 per cent, or 36.5p, to 225p.
Last month, Anthony Codling at Jefferies claimed just half the homes listed in November 2016 were sold within ten months. The firm claimed the real figure was closer to 88 per cent.
The FTSE 100 ended the day down 0.48 per cent, or 33.25 points, at 6888.69, while the FTSE 250 was off 0.69 per cent, or 132.39 points, at 19187.09.
An £88million deal to buy record management firm TNT Business Solutions boosted Restore’s shares.
Restore, the AIM-listed business relocation and document management specialists, plans to fund £51.5million of the deal by placing 10.1m of new shares with institutional investors.
The rest will be funded by Restore’s debt facilities at its banks.
The deal to buy TNT, which is owned by US courier service Fed Ex Corporation and employs 250 staff, should complete by May.
Restore’s shares spiked by 7.4 per cent or 35p to 507p.
Antibody manufacturer Bioventix increased its interim dividend by 20 per cent to 25p a share.
In its six-month results for the period ending December 31, the biomedicine firm reported a 36 per cent increase in profits and a 13 per cent increase in revenue. Shares jumped 19.2 per cent, or 395p, to 2450p.
A decent set of results pushed up the share price of market research agency You Gov. Revenue was up 10 per cent in the six months ending January 31, while pre-tax profits shot up 78 per cent.
Broker Numis has given the firm an ‘add’ rating and says You Gov’s interim results were ‘very strong’.
Shares yesterday hopped 4.1 per cent, or 15p, to 380p.
Shares in miner Bushveld Minerals dived after it tapped investors for extra cash. The AIM-listed producer of the metal vanadium raised around $22.2million (£15.7million) to increase production and pay off its debts.
Shares dived 6.3 per cent, or 0.82p, to 12.3p.
On the small cap index, embattled High Street retailers Carpetright and Mothercare were crying for mercy after yet another fall in their share prices.
Carpetright was down 6 per cent, or 2.4p, to 37.5p while Mothercare was down 2.9 per cent, or 0.5p, to 17p. It means they are down 78.3 per cent and 75 per cent, respectively, since the start of the year.
Only last week, Carpetright said it was looking to close stores as part of a turnaround plan.