Purplebricks has released its latest financial results for the UK showing a profit of £4.2 million on revenues of £78.1 million and that its name is better known than the leading property portals, it has claimed.
But it’s business is looking shakier abroad within its two key overseas territories, the US and Australia, its results show.
In America, where it earlier this week launched into Florida, Purplebricks made a loss of £16.5 million on revenues of just £2 million, while its troubled Australian operation lost £12.4 million on a turnover of £13.5 million.
But however much traditional agents might be hoping that the hybrid agency will crash and burn, there’s little sign of it in the UK.
Purplebricks has doubled its number of registered users during 2018 to 13.82 million, seen instructions increase by 56.2% to 64,376 and average revenue per instruction increase by 12.9% to £1,168.
Instructions into sales
But as always, Purplebricks doesn’t reveal how many of these instructions have been turned into sales, saying only that it sold 3.1 times the number of properties than its largest competitor.
“We expect future developments in estate agency to continue to see a migration away from the high street as a highly fragmented market consolidates by virtue of the ease and simplicity that Purplebricks and its technology brings,” says Michael Bruce, its group CEO (left).
The group’s overall finances look less healthy. Although revenues doubled to £93.7m and gross profits likewise, its losses increased dramatically from £6m in 2017 to £24.7m this year.
Purplebricks remains very bullish about the future. It claims research shows more members of the UK public recognise its name than Rightmove and Zoopla and says it wants to be more than a sales and letting agency.
Michael Bruce says he is going to use the Axel Springer cash to move into home products that make “everything much more simple, convenient, informative, innovative and supportive for our customers” and keep Purplebricks ‘front of mind’.