PurpleBricks reports strong trading after market reopens
By Sean Farrell
Date: Monday 03 Aug 2020
(Sharecast News) - PurpleBricks said July was its best month for new instructions as the hybrid estate agent reported a £9.4m annual loss.
The operating loss for the year to the end of April widened from £1.5m a year earlier as revenue fell 2% to £111.1m. The figures cover PurpleBricks' operations in the UK and Canada.
The annual results were hit by the shutdown of the UK property market because of Covid-19. UK revenue was flat for the first 10 months of the year but fell 11% for the full year after the market closed in from late March.
PurpleBricks said the market had recovered well since mid-May, supported by the government's holiday for stamp duty on property purchases. July was the company's best month for new instructions with more than 7,000 properties registered, it said.
The company's shares rose 10.9% to 51.75p 09:16 BST. At their peak in July 2017 the shares were valued at almost £5 each.
PurpleBricks sold its Canadian business in July, leaving the company to focus on its original UK market. PurpleBricks ran into trouble by expanding too quickly and has also quit the US and Australia.
The company, founded in 2012, operates online and charges flat fees instead of a percentage of the sale price, allowing sellers to save money depending on how much work they do themselves. PurpleBricks said it saw signs of a significant shift by consumers to using apps and technology following the Covid-19 lockdown.p
Chief Executive Vic Darvey said: "This year has seen significant change for the group, shifting our strategic focus back to the UK market and ensuring that we have a strong platform for growth. As a result, we are now emerging through the Covid-19 pandemic in a very strong position.
"The group is encouraged by the early signs of the housing market rebounding well following the lifting of the lockdown and the government's stamp duty holiday."
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