Purplebricks revenue surges but operating losses widen
AIM-listed online estate agency Purplebricks reported a surge in first-half revenue on Wednesday and upped its revenue guidance, although its operating losses widened.
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In the six months to the end of October, group revenue rose to £46.8m from £18.7m the year before. UK revenue increased to £39.9m from £18.3m, while revenue in Australia rose from £400,000 to £6.8m. After formally launching its US business in Los Angeles in September, the group generated £100,000 of revenue there.
However, group operating losses widened to £8.2m from £2.8m in the period. The UK swung to a profit of £3.2m from a loss of £300,000 in the same period a year ago, but losses in Australia widened to £5.1m from £2.5m, while the US made a loss of £6.3m.
Average income per instruction in the UK was up 14% to £1,138, while the number of local property experts rose 107% to 650 as at 12 December.
The company lifted its UK revenue guidance for the full year by 5% to £84m, reflecting a strong first half, recent investment in LPEs and infrastructure, to capitalise on momentum and further increase market share.
Chief executive officer Michael Bruce said: "We have had a great first half, with strong trading, significant strategic progress and substantial operational upgrades. The UK business continues its rapid top line growth, which is driving a strong increase in profits and margin expansion. We continue to win UK market share from traditional operators in what is a challenging market and consolidate our leading position with competing digital and hybrid offerings.
"Our overseas expansion is progressing well with Australia on track, and the launch into the US in September ahead of schedule. While it is very early days we are greatly encouraged by the initial response from customers and the quality of applicants looking to be Local Real Estate Experts. We are pleased with our progress to date, confident in our future, and as a result upgrade our UK full year revenue guidance."
At 0930 GMT, the shares were down 6.9% to 369.50p.