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The Aim 100 2018: 20 to 11

The Aim 100 2018: 20 to 11

20. Purplebricks

Purplebricks (PURP) has courted controversy and ruffled more than a few feathers in its relatively short time as an Aim-traded company. Its hybrid online estate agency service has grabbed a majority share of the online estate agency market, but its detractors have questioned the number of successful completions and also the vulnerability of the business model to competition.

Yet since flotation in April 2016, the shares have risen by 135 per cent. True, they are down from a peak of 445p in February, not helped by a warning that bad weather, “some UK underlying softness” and staff training will hold back profits for the year to April 2018. However, European media group Axel Springer has invested £125m through the purchase of new shares, and Purplebricks is expanding into the US, following a successful move into Australia. The company will always attract criticism (presumably from those who chose not to buy the shares at 135p), and remains a high-risk investment, but at 317p we’re still keen on its disruptive business model. Buy. JC

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