Market wrap: Purplebricks plummets on deposit errors
Shares in online estate agency Purplebricks plunged to an all-time low on Monday after the company said it will have to put aside millions of pounds to cover mistakes made around tenant deposits in its letting business.
The AIM-listed company said this morning that an internal review had uncovered “a process issue in how it has been communicating with tenants on behalf of its landlords in relation to deposit registrations”.
It added that it is now putting money aside to cover claims that could arise under the Housing Act, which could range from £2m to as much as £9m. It has also delayed the publication of its latest financial results.
Shares in online estate agency Purplebricks plunged to an all-time low on Monday after the company said it will have to put aside millions of pounds to cover mistakes made around tenant deposits in its letting business.
The AIM-listed company said this morning that an internal review had uncovered “a process issue in how it has been communicating with tenants on behalf of its landlords in relation to deposit registrations”.
It added that it is now putting money aside to cover claims that could arise under the Housing Act, which could range from £2m to as much as £9m. It has also delayed the publication of its latest financial results.
The company’s stock sank as low as 24p before closing at 25p, down more than 20% over the course of the session.
With new work-from-home guidance coming into force today, flexible office operator IWG dropped by 6.3% to 258.8p, its lowest in more than a year and marking it as one of the sharpest fallers in the FTSE 250. In the FTSE 100 British Land was among the steepest drops, down 3.2% to 503p.
As Wetherspoon founder Tim Martin said that new restrictions could push the pub group to a loss in its half-year results, its stock dropped by 5.4% to a five-year low of 820p.
The FTSE 100 finished the day down 0.8% at 7,213, while the FTSE 250 stood at 22,647, down 1.2%.
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