Purplebricks has released another trading up that reveals lower volumes of new instructions at a time when most agencies have been scrambling to cope with historically high transaction levels.
In a terse note to investors this morning, Purplebricks has released some details of its full-year trading results up until 30th April 2022, a period covering one of the most astonishing months for many sales agents.
“Since the announcement of our interim results in January, we have seen a continuation of lower volumes of new instructions coming to market,” the update says.
“These market conditions have impacted the level of net instructions which for the full year ended 30 April 2022 were 40,141 (FY21: 58,043).”
This means the estate agency’s instruction are down by 31%, a surprising figure given results from other agencies reporting gains in instructions.
As a result, Purplebricks says its revenues are expected to be approximately £70.0 million for the full year and Adjusted EBITDA is expected to be a loss of £8.8 million.
Our cash balance at 30 April 2022 was £43.2 million, reflecting the lower instruction volumes and exceptional costs in line with guidance.
Purplebricks has been struggling for some time now following several own-goal mistakes including the £3.6 million cost of incorrectly handling deposits for several hundred tenancies and a looming court battle over its employment contracts.
The company’s city advisor, Zeus, has come to the company’s defence, saying that: “New instructions in 2022 are down year-on-year…. this is consistent with RICS surveys
which show extraordinary low levels of properties for sale and new instructions”, and praising its management for keeping losses to ‘a minimum’.
The Company will report its full year results on 12 July 2022.