Purplebricks ‘Good Progress In A Challenging Market’

In its latest six-monthly trading update Purplebricks say that it remains on course to meet previously forecast revenue for the year of between £165-185m.

In the UK, Purplebricks say that it has continued to make good progress in the last six months with year-on-year revenue growth of approximately 20% driven by double-digit growth in instructions along with a continuation of increasing average revenue per instruction.

It has continued to win UK market share, with 74% of the online/hybrid sector in October, despite a challenging market with increased competition and media spend in the sector increasing 80%.

Internationally the update says Purplebricks’ US Company has ‘established the foundations to realise the substantial market opportunity’ and that the Canadian business is ‘performing strongly’. It adds that the company have ‘experienced some challenges in Australia amid a tough market backdrop.’

Michael Bruce Group CEO says: “The challenging UK housing market is driving a shakeout in the industry, highlighting weaknesses in both some traditional and online agents business models. 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. We are confident about the future for our business.”

The trading update delivers no specifics on the actual number of instructions being received, nor properties sold. Investors may be looking towards the interim results due on 13 December to provide more insight.

Source London Stock Exchange
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