Purplebricks has spent £7 million more on advertising in the UK over its past financial year than the previous one, its annual accounts published today reveal, and predicts it will soon have a 10% share of the whole UK property market.
During its previous accounting period for 2017 the hybrid agency spent £14 million on marketing in the UK, which over the latest period has increased to £21 million.
The UK remains the jewel in the Purplebricks crown where turnover increased by 81% from £43.2 million to £78.1 million, gross profit almost doubled to £45 million and net profits increased from £1.1m last year to £6.5 million this year.
The rest of the group’s activities outside the UK did less well. After costs Australia lost £11.8 million and the US £16 million, pushing group operating losses to £21.3 million.
Purplebricks says it now has 630 ‘local property experts’ in the UK, up from 440 a year ago.
The most striking statement within the annual report is that Purplebricks expects to take 10% total UK market share in the “medium term”, although its share of the online market has only crept up slightly to 74%.
Purplebricks has also revealed ‘independent research’ this week that claims the company sells more of its properties and completes faster than any of the top 10 traditional estate agents in the UK.
“We are confident that Purplebricks’ market leadership will continue, given the strength of its brand, the continuing investment into team, technology and processes and our £153m war chest for global growth,” says Group Chief Executive Michael Bruce (pictured, above).
The company is spending hard in the US and Australia on advertising, burning a combined total of £20 million on ‘commisery’ style ads in the two countries this year.