Purplebricks has reported a drop of 23% in revenues down to £70 million, and a profit fall of 27% to 42.1 million.
The struggling agency also suffered an EBITDA loss of £8.8 million.
Helena Marston, company CEO, (pictured) says: “Last year’s financial performance was significantly impacted by the challenges resulting from the implementation of our new operating model and investment in marketing that did not deliver the expected results, alongside a housing market which played against us.
“Nevertheless, our performance was not good enough.
“We have already taken decisive action. We have completed a substantial cost-reduction programme, re-trained all our field agents to raise standards and improve conversion, increased our prices and removed the Money Back Guarantee, adopted a more targeted sales and marketing plan, and dramatically overhauled our processes and procedures,” she adds.
“We are also assessing additional revenue streams including our new mortgage proposition which we expect to launch by the end of this financial year.
“I am convinced that the potential for Purplebricks is huge. We have a proposition which is more relevant and valuable for our customers, as well as a brand which is the best known in the industry. I’m confident that the actions we are taking this year will set us on a clear path towards a return to sustainable, profitable growth.”
The firm’s share price fell to 14.34p last month, its second lowest level ever, and is today even lower at 14.10p. In May it revealed instructions were down 31% year-on-year.
A money back guarantee was scrapped in July and fees raised, with vendors selling a property outside London now paying a standard fixed-charge of £1,199 and £1,999 in the capital.