Another loss year for Yopa in 2023, latest results reveal
In a self-described ‘challenging year’ Yopa’s revenue was down by nearly 20% when compared to 2022, prompting directors to predict more funding will be needed.
Since its inception Yopa has yet to make a profit and last year was no different, its accounts reveal, with the company making a loss of £3.7m with revenue falling from £15.68m to £12.79m, although losses are declining compared to the previous year (£7.82m) which was a significant improvement compared to the eye-watering £33.05m the business lost in 2018.
The online agent sounds a note of optimism in its view of the market saying: “Whilst we expect the property market to continue to face challenges in 2024 there are more encouraging signs in several areas influencing the housing market.
We expect the amount of properties being listed for sale to moderately grow in 2024.”
“We expect the amount of properties being listed for sale to moderately grow in 2024 with inflation seemingly under control and improving mortgage rate stability.”
The company does admit however that they need the support of Savills (via Grosvenor Hill Ventures arm) and DMGT if it is to continue as a going concern.
Uncertainty
It warns in its statement that: “Due to the reliance on support which could not be forthcoming and is therefore inherently uncertain, there exists a material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern and, therefore, that the company may be unable to realise its assets and discharge its liabilities in the normal course of business.”
It should be noted that the 2023 figures were based on a shorter year than normal, from January to September, which comes after delays the previous year which were blamed on changing accounting processes brought about by DMGT taking a majority share.
The annual report also reveals that five of Yopa’s six directors have since resigned and only one has joined – Chairman Manuel Lopo de Carvalho.
Immensely proud
Verona Frankish, its CEO says: “YOPA is in a very strong position having seen sustained revenue and bottom line growth in the last two and a half years.
“We have transformed our operating model and improved our P&L significantly whereby we are now on target for a profitable 2024/25 financial year as per plan.
“2024 has seen a number of profitable months and this has been achieved through the established brand that we’ve built and the diligence and dedication of the YOPA team which in spite of our growth in customers and revenue, has become even more efficient.”
“I am immensely proud of our journey and our performance as the most successful hybrid estate agency in our sector.”
Manuel Lopo De Carvalho, CEO at DMG Ventures adds “The YOPA business has made significant progress under the leadership of Verona and her team and we are delighted that the business is performing so strongly.
“Our path to profitability is exceeding expectations as per the strategy that Verona and the board set in 2022 and DMG continue to support YOPA unequivocally and hence the decision to increase our shareholding significantly as we did last year”
Sometimes companies are just run as a tax loss, but setting fire to £10,000 every day is a very bad business model. If you factor in the £100 million that has been burnt over the years with zero market penetration then I think even the most stoic investors must be ready to axe this turkey by Christmas 2024. This was a vanity project from day one with a strong sprinkle of nepotism and the fact that all the ‘names’ are no longer directors suggests that the Turkey shooting season is upon us. Technology can do great things, but if the fundimental business model is flawed you have a cash guzzler that can only be stopped when the money is used for better purpose.