Purplebricks shares plummet after shock sales warning
UK, US CEOs also quit as estate agent blames weak UK housing market
Real estate agent Purplebricks shares slumped on Thursday as the company slashed its sales forecast and its top executives in the UK and the US quit.
The AIM-listed outfit, which has been working on its overseas expansion over the last year, said expected to post revenues of £130m - £140m, a 20% drop from its previous guidance of £165m-£175m.
Purplebricks blamed the "challenging" UK housing market and headwinds in Australia for the lower-than-anticipated figures.
It also said UK chief executive Lee Wainwright was leaving "for personal reasons" while no explanation was given for the departure of US boss Eric Eckardt.
Group chief executive and founder Michael Bruce said: "Although there are macro and industry headwinds across markets we are well placed to capitalise on the significant opportunity for growth that exists in each country, albeit not entirely as we would have wanted before our year-end.
"The board remains confident of the long-term growth potential of the business and the opportunity to deliver substantial value for shareholders."
As of 1030 GMT, Purplebricks shares had tumbled 25.88% to 122p.