Online estate agency Housesimple has reported a £13.5m loss in its latest financial year but says that the company has adequate resources to continue trading for the foreseeable future.
Analysis of the accounts by industry website Property Industry Eye reveals that the loss after tax for the year ending March 2018 was around £13.5m compared to £9.8m in the previous year. It adds that since the end of March 2018 the company has received £2.5m in loans plus £1.5m of investment.
Housesimple’s Board comment: “The Board have prepared forecasts for the period to 31 May 2019 which indicate that the company can continue to trade within its cash resources for the twelve months following the signing of these financial statements.
“Furthermore, the holders of the loan notes negotiated in December 2017, totalling £17m, have advised that they do not currently intend to recall those loans in the 12 month period following the date on which the financial statements are signed.
“Therefore the directors have a reasonable expectation that the company has adequate resources to continue to trade for the foreseeable future.”
PIE estimates that Housesimple has received around £33m investment prior to that in the latest accounts, including substantial amounts from Carphone Warehouse founder Sir Charles Dunstone.
The report certainly offers an interesting insight into the state of the finances of the online estate agency business where it seems that even upwards of £40m doesn’t guarantee market pre-eminence.