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 60,000 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 BBC's undercover reporter was told that Mr Jacques had bought his stake at a price of just under £1 per share. 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.