Purplebricks Losses Up, Quitting US

In its latest results online estate agent Purplebricks Group Plc said that both group revenue and losses were up in the year ended 30 April 2019, and that it is closing its business in the USA.

The company said that group revenue was up by 55% to £136.5m compared to £87.8m in 2018 and that it had an operating loss of £52.3m compared to £27.8m in 2018.

It was upbeat about its UK business which it said returned an operating profit of £5.3m, and also about its Canadian operation which it said ‘continues to meet management expectations’. It added that its intention is to secure 10% of the UK market.

On the closure of the US operation as a result of a strategic review Purplebricks Vic Darvey CEO commented: “The outcome of the strategic review was that while there remains a significant opportunity to disrupt the US market, it would take substantially more management time and resources than the Company is able to commit at this time. Therefore, a decision was taken to withdraw from the US and either sell or close the business.”

It has been a turbulent year for Purplebricks, with the departure of founders Michael and Kenny Bruce and closure of its Australian operation. Of these results and the US closure many will say ‘we told you so’. However, it will be interesting to see how Purplebricks performs in the UK over the coming year now that the company appears to be refocusing around its core.

Source London Stock Exchange
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