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Purplebricks reveals double-digit growth in UK revenue and instructions

Latest trading update shows US and Australian still at very early stages of development but says it is on target for group revenues of at least £165m.

Nigel Lewis

Purplebricks has grown its revenues in the UK by 20% and instructions by at least 10% over the past six months, the company has revealed in its latest trading update.

The company also says its overall operation which now includes a presence in Germany and Canada as well as operations in seven US states and Australia, is on track to turn over between £165 million and £185 million over its current financial year.

The statement is noteworthy for what it doesn’t reveal including UK profitability and LPE numbers in the UK, although the company says that nearly half of British consumers now recall its name unprompted.

It’s market share remains static, though, sticking at 74% of the hybrid estate agency cake, the same figure it claimed in July.

michael bruce“The challenging UK housing market is driving a shakeout in the industry, highlighting weaknesses in both some traditional and online agents business models,” says Group CEO Michael Bruce (left).

“Against this backdrop Purplebricks continues to grow and win market share. Longer term with the best-known brand in the sector, our flexible business model and the strong balance sheet, Purplebricks is well placed to further strengthen its leading UK position and replicate this success overseas.”

This may take some time. The company admits that its US operation remains at an early stage of development but has seen strong growth in listings and revenue.

US and Oz

But it also admits that Purplebricks in Australia has experienced ‘some challenges’, an oblique reference to recent unrest among some of its territory holders and two increase in fees and changes to the way it charges the fees.

Purplebricks says it has since strengthened its team and seen an increase in new instructions during September in Australia.

The company also highlights difficulties it has encountered with its investment in German hybrid counterpart Homeday, which German authority’s recently announced would be investigated by the country’s competition authority.

 

November 6, 2018

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