Purplebricks “resilient” despite losses widening

Purplebricks are “resilient” despite increasing losses

New numbers have confirmed that pre-tax losses at online property agency Purplebricks have increased in the past fiscal year.

The listed company, headquartered in Solihull, reported losses of £ 13.2m in the twelve months to 30 April 2020, compared to £ 3.6m in the previous twelve months.

Revenue also increased from GBP 113.8 million to GBP 111.1 million over the same period.

In a statement to the London Stock Exchange, the company said that UK earnings remained unchanged in the first ten months of the year until the Covid 19 pandemic broke out.

UK instructions also fell 24 percent, but were underpinned by a 12 percent increase in ARPI.

The company recently left the US and Australian markets and also sold its Canadian business.

CEO Vic Darvey said: "This year, there were some very difficult market conditions with political and economic uncertainty that dominated the landscape as a result of the Brexit and Covid-19 pandemic.

"Despite all of this, I am happy to say that we have seen stable performance with a 2 percent drop in sales across the Group.

"This year the group has changed significantly by shifting our strategic focus back to the UK market and ensuring that we have a strong growth platform.

"As a result, the Covid 19 pandemic has now put us in a very strong position.

"We have left the US and Australian markets, recently sold our Canadian business and increased our focus on imparting financial discipline and operational excellence across the business.

"In addition, we have set up a new and very experienced digital management team.

"Despite the challenges of Covid-19, our strategic initiatives are accelerating to accelerate our digital and data capabilities. With a very healthy net cash balance of £ 66m, I am confident that we can take advantage of the changing landscape.

"The group is encouraged by the first signs that the property market is recovering well after the blockage was lifted and the government's stamp duty holiday.

"We firmly believe that a technology-oriented real estate agency is proving to be a successful model in the current market, and there is clear evidence that consumers are increasingly shifting to apps and technology-based alternatives.

"With our strengthened management team and our balance sheet, we are in a strong position to accelerate our model, expand our market share and increase our value-added sales."

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