16th Jun 2016 07:03
LONDON (Alliance News) - Purplebricks Group PLC on Thursday said it was planning to launch its estate agency in Australia, after its full-year revenue came in more than five times the figure it reported for its previous financial year.
Purplebricks, which does not operate any high street branches and instead employs 'local property experts' who advise customers through the process of selling their home, reported revenue of GBP18.6 million for the year ended April 30, compared to GBP3.4 million a year earlier.
Purplebricks said the average number of monthly instructions "continues to grow", and in its second half the monthly average came in at 2,033 instructions, compared to 578 for the same period a year earlier.
"In April 2016, a month where most traditional operators were reporting a slowdown in activity levels, we achieved 2,827 instructions," Purplebricks said, and added that, over its financial year, it achieved an instruction to completed sale rate of 77% for the year.
The company's pretax loss widened to GBP11.9 million from GBP5.4 million a year earlier, on the back of increased marketing costs, which came in at GBP12.9 million, compared to GBP3.5 million. However, Pureplebricks said it continues to scale and anticipates its UK business moving into profit in the current financial year.
Purplebricks said it continues to recruit local property experts, with the number expected to rise to 245 by the end of June, having ended May at 225. In October, the figure stood at 150.
Elsewhere, Purplebricks said it is also planning a launch in Australia, and has recruited an Australian management team. The company said its maximum planned investment of GBP10.0 million will be funded from existing cash resources over the next two years.
No dividend was offered in the maiden set of full year results since listing in London in December.
"In just our second full year of operation we are leading change in an industry that has long been stagnant and is only now waking up to the opportunities and threats posed by technological advance and changing consumer behaviour. While others are following we have retained our leading position, with 62% of the non-traditional estate agency market and look to replicate this success in Australia," said Chief Executive Michael Bruce.
By Hannah Boland; [email protected]; @Hannaheboland
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