Purplebricks revenue up despite 'challenging' market
Estate agent disrupter Purplebricks has reported 20 per cent revenue growth in its UK operation despite “challenging” market conditions.
The company said it remains on course to hit £165m-£185m revenue for the full year after announcing the results for the six months ending on 31st October.
"The challenging UK housing market is driving a shakeout in the industry, highlighting weaknesses in both some traditional and online agents’ business models,” said group CEO Michael Bruce.
“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."
Purplebricks launched into the United States a year ago and has grown a team of 140 ground-level experts and sales consultants operating in seven states, with more currently in training and going through the recruitment process.
The company said it had experienced “some challenges” in the Australian market, adding that “despite a slowdown in performance across the summer months, October showed over 35 per cent growth in new instructions on the month of September following the launch of our new customer proposition”.
Purplebricks announced its move into Canada with the acquisition of Duproprio/Comfree in July 2018 and into Germany in October 2018 through the formation of a joint venture with Axel Springer, which is taking an initial minority investment in Homeday. Both deals are backing existing management teams with local knowledge, proven track records and leading positions in their respective territories.
Purplebricks said its Canadian business performed strongly in line with expectations.
NOTE: As stated in the Homeday announcement on 15th October, the investment of £11.1m (Purplebricks share) is subject to antitrust clearance, the process of which has now commenced.