Sir Charles Dunstone vows to continue backing Purplebricks as losses mount
The online agent has published its 2025 annual report, revealing the level of financial support required from the Carphone Warehouse founder.
Sir Charles Dunstone’s investment vehicle Freston Ventures has pledged to continue financially supporting Purplebricks until at least October 2027 despite its financial performance.
It comes as the online agent published its long awaited annual report for the 12 months to 2025, revealing pre-tax losses of £32.7 million.
As of the end of March 2025, Purplebricks Property had net current liabilities of £55.8 million, up from £22.8 million a year before.
The accounts show that the business also owes its parent company Strike Limited around £48.1million.
The latest company accounts for Strike Limited, also published today, show the group has continued to make losses and has been reliant on shareholder funding to meet its obligations as they fall due.
Additional funding of £32.65 million has been received since the year end, and utilised to support the working capital requirements of the business, the documents show.
Freston funding
Despite the financial performance, the Purplebricks Property accounts says Strike Limited directors have prepared detailed forecasts for the group covering the period to October 2027.
It discloses that Freston Ventures has provided a written letter of support committing to provide financial backing for at least the “foreseeable future” and to not call in any loans for the 12 months following October 2026.
Among the reasons the document cites for the continuing support is home moving demand in the market as well as the return of Purlebrick’s founders Michael Bruce and Kenny Bruce, as well as chief financial officer Neil Cartwright rejoining the business.
The document says: “This management team previously founded and scaled Purplebricks from a start-up into one of the UK’s most recognised estate agency brands, achieving a public listing on AlM in 2015 and, at its peak, a market valuation in excess of £1 billion. The directors believe this team’s direct experience of operating large-scale property acquisition funnels, spanning consumer marketing, systematic lead generation, data-driven conversion management and regional scaling, provides renewed confidence in the business’s ability to execute its strategy.”
As at 31 March 2025, the company had net current liabilities of £55,772,234 (2024: £22,854,606) and net liabilities of £56,211,206 (2024: £23,467,456) and, in the period ended on that date, incurred losses before tax of £32,743,750 (2024: £23,467,457). Since the balance sheet date, the Strike Group (group) has continued to make losses and has been reliant on shareholder funding to meet its obligations as they fall due.
The original founders blew through tens of millions creating brand awareness but little brand loyalty.
There’s no indication that will change any time soon.
Peurile marketing, vague sales strategy and no crystal-clear vision other than stack it high and sell it cheap.
When PurpleBricks starts to make a consistent profit, I’ll take it all back but for now, it’s a house of cards.
I cannot understand how any business can survive when operating with these losses.
Do the accounts show how much directors have been paid in salaries, bonuses and dividends, they really shouldn’t be getting anything at all?
The phrase “more money than sense” springs to mind