30th Mar 2020 11:01
(Alliance News) - Purplebricks Group PLC on Monday said coronavirus hurt its earnings in its current financial year as demand for property weakened.
The AIM-listed estate agency said has been adapting to the Covid-19-changed environment by capitalising on its strong digital capabilities. This includes moving the entire business to working from home and adopting a complete online model encapsulating video valuations, virtual viewings and connecting customers with potential purchasers via the Purplebricks online platform.
However, since the government's restrictions on movement were implemented, the company said it has seen a weakening in vendor and purchaser activity.
As a result, Purplebricks said it has taken immediate and significant measures to preserve cash and implement a lean operating model through this period. All TV and radio advertising has been suspended and online marketing costs have been "significantly" reduced.
The company said it currently retains GBP35 million of cash on its balance sheet and has no debt.
Looking ahead, Purplebricks said it now expects revenue to be below expectations for its financial year to April.
More positively, the company said it believes its flexible, digitally led operating model leaves Purplebricks well positioned.
Purplebricks shares were trading 2.6% higher in London on Monday at 38.75 pence each.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
PURP.L