Purplebricks owner Strike warns that the business is at serious risk of going bust, as it reveals big losses in the year it bought the troubled agency for just £1.

Directors say market conditions, the company’s performance and future funding are all factors that could jeopardise its future.

Significant doubt

Robert Clarkson, Director at Strike, says in the latest company accounts: “The forecasts are subject to external market trends, the company’s operational execution and the long-term availability of future funding.

“In light of such risks, there is a material uncertainty that may cast significant doubt on the company’s and the group’s ability to continue as a going concern.”

Losses

Strike revealed that in the year to March 2024 (Purplebricks was bought in June 2023), the group suffered losses before tax of £37.3 million on a turnover of £31 million, up from £13.2 million.

The company says it suffered because of interest rate rises and “significant changes in policy” which Impacted performance”.

“The housing market slowed and mortgage lenders amended product offerings and further increased mortgage interest rates,” Clarkson says.

Strike also made an adjusted loss of £18.4 million in the year before it bought Purplebricks.

The directors remain confident in the strategy, future direction, and long-term plans of the business.”

Clarkson does also report optimism the company can survive: “Notwithstanding this material uncertainty, the directors remain confident in the strategy, future direction, and long-term plans of the business.

“The directors therefore have a reasonable expectation that the company and the group will have adequate resources to continue in operational existence for the foreseeable future.”

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