A top manager at the fast-growing online estate agency Purplebricks sold £288,775 of shares days before a critical BBC report was broadcast. Lettings director Richard Jacques sold a total of 60,000 shares in two tranches on July 27 and 31. The BBC broadcast two reports on August 2 into Purplebricks’ sales tactics that wiped 7% off its value. Senior staff have sold millions of pounds of shares in the AIM-listed agency in recent months. Shares in the company, founded in 2012 by brothers Michael and Kenny Bruce, have climbed 229% this year to 444p, to value the loss-maker at £1.2bn. Purplebricks says it saves vendors thousands of pounds by charging a flat fee of up to £1,199, instead of a percentage of the sale value.
Purplebricks' lettings director, Richard Jacques, sold two shares worth £288,775 days before the BBC broadcast an investigation into the online estate agent's advertising claims, after which shares in the company dropped by 7%. The company said it could save homeowners an average of £4,158 ($5,386), even though the Advertising Standards Authority had banned it from making that claim, the BBC Watchdog report alleged. Jacques "was not made aware of the BBC feature before the shares were traded", Purplebricks said. During March and April Purplebricks' staff and directors sold about £28m of shares in the company.