Purplebricks swings to loss in H1 but revenue rises

Purplebricks said the losses and costs related to the closure of its USA and Australia businesses earlier this year was going as planned and within the range of 10 million pounds to 14 million pounds.

In the six months to the end of October, revenue rose 12.5% to £64.8m, with United Kingdom revenue down 3% to £47.1m as a 15% drop in the number of instructions was largely offset by a 12% increase in average revenue per instruction (ARPI). Most of the revenue, 73%, came from its United Kingdom operations and the rest from Canada.

"We end the first half having now stabilised the business and the significant losses incurred previous year have now been reversed with the group enjoying profitable trading". Despite this the group generated a profit of £4.3 million during the period, compared to a £48 million loss during the same period a year ago.

The company earned higher fees from selling more houses on its website and put forth a plan to grow its market share to 10% in its core market. It puts brand awareness in the United Kingdom at 97%.

Its results also confirm that the company is planning to overhaul its pricing structure following a £100 fee hike earlier this year.

In the United Kingdom, it brought in £47.1m of revenue, down 2.7% from the same period previous year. The cost of sales was £17.1m, similar to the sae period a year ago, and its gross profit was £30m, down from £31.2m.

Closure costs in Australia were £6-8m, and £4-6m in the US.

Purplebricks Group chief executive Vic Darvey said: 'We are very pleased with the progress made in the period in light of the market backdrop.

Estate agency business Purplebricks Group has reported group revenue was up 12.5% to £64.8m for the six months ended 31 October 2019 in a "challenging" first-half for the group.

"We remain confident of meeting our medium-term objective to gain a 10 per cent share of the United Kingdom market".

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