Yopa Property Limited reported losses of £32.25m compared to £14.25m for the previous year, according to its latest annual report and financial statement filed recently.
The report, for the year ended 31 December 2017, added that the company had a cash balance of around £12.5m, net assets of around £14m and net current assets of around £12.4m.
The directors commented: ‘As the Company is still in an early growth phase, it is currently loss making. The Company has historically relied upon capital contributions by it shareholders, to maintain an adequate level of cash and expects to continue to depend upon its shareholders and investors for financing at some point in the next 12 months depending on market conditions and trading results.”
They continued: “To continue as a going concern the Company must generate sufficient operating cash flow to fund its capital and operating requirements or secure new funding. Whilst directors have instituted measures to preserve cash, there is uncertainly over future trading results and cash flows.”
The report explained that, although the directors felt it appropriate to prepare the financial statements on a going concern basis, as there was no contractual guarantee for shareholders to provide more funding this represented a ‘material uncertainty’ casting doubts on the company’s ability to continue as a going concern.
Yopa’s accounts confirm what many people suspect: It takes a lot of cash to run an online agency and, in a tough market, it is difficult to raise all of that from actually selling property.