The company behind hybrid estate agent Housesimple has published its latest annual accounts which reveal a worsening financial position for the company and a reduction in its head count.
Its results, which cover the 12 months to the end of March this year, reveal increasing debts and seven fewer employees, taking its team to 86 people.
Its cash reserves have shrunk from £3.17 million to £2.18 million while debts have increased from £13.4 million to £21.8 million, driven largely by money lent to it by investors. This has totalled £12.5 million during the 12 month period covered by its accounts.
The company also raised £4.5 million from existing shareholders by way of an equity issue, it has revealed.
These include Toscafund Asset Management and Freston Ventures, the private investment vehicle of Carphone Warehouse founder Sir Charles Dunstone and his business partner Roger Taylor plus other individuals.
Despite its indebted financial position, the company’s board say that Housesimple can continue to trade using its cash resources until at least October 2020 and that it will will carry on for the ‘foreseeable future’.
Housesimple will face significant cashflow challenges as it begins to roll out the company’s ‘free to sell’ offering. Earlier this year the roll-out began in the NW of England and most recently in the East Midlands, with plans to go national soon.
This includes offering free listings, sales support and a for sale board to vendors. Housesimple hopes to general revenue from referrals and commission from selling financial and conveyancing products to clients.