- Real estate agent Purplebricks said publishing group Axel Springer had bought an 11.5% stake in the company for £125m, while warning that its annual revenue growth would miss market expectations.

Axel Springer agreed to purchase around 27.8m shares in the company at 360p each for around £100m, representing an 8.6% discount to their most recent 10-day volume-weighted average price.

In addition, Axel Springer agreed to buy around 6.9m shares, also at 360p each, from chief executive Michael Bruce, director William Whitehorn and sales director Kenny Bruce.

The funds raised would be used to accelerate the group's expansion in the US, support entry into new markets and fund technological innovation, Purplebricks said.

Revenue for the year through April, meanwhile, was expected to be around 5% behind company-compiled consensus of £98m 'with the consequential impact on the operating profit line reflecting the operational gearing in the company's business model', Purplebricks said.

It blamed the downgrade on subdued conditions in the UK, where house price growth has stalled, particularly in London, exacerbated by severe snow storms in February and March.

Revenue was nevertheless still expected to double compared to the previous year, the company said.

At 1:54pm: [LON:PURP] Purplebricks Group PLC share price was -30.5p at 280.9p

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