Purplebricks says it is receiving an average revenue per customer of £1,000, has more than doubled instructions and is now generating its ‘maiden profit’ on its UK business.
In figures released to the City this morning based on six months’ trading to the end of October, the hybrid company says its revenue grew 159 per cent to £18.7m, exceeding full year 2016 sales target of £18.6m.
There are now 329 Local Property Experts - the agency’s ‘people in the field‘ - having grown from 124 a year ago.
That maiden profit is modest - just £300,000 - but comes after Purplebricks’ loss of £6m in its previous trading update. On a group level, including its international activities, its overall losses have dropped from £6m to £2.2m. Instructions are up 108 per cent and average revenue per customer up 20.6 per cent to £1,000.
It claims to have sold and completed on £2.589 billion of property in the past half year - sales agreed subject to contract add up to a further £2.521 billion. It says it is agreeing a sale every 16 minutes, 24 hours a day.
“Our strong results are testament to the seismic shift that is underway in the estate agency market. I am especially proud that currently we are agreeing a sale every 16 minutes, 24 hours a day and the number of properties sold in the first half is similar to the total number of properties sold during the whole of the previous year” says chief executive Michael Bruce.
“These results demonstrate that the business model is working, with the UK generating a maiden half-year adjusted EBITDA [earnings before interest, tax, depreciation and amortisation] profit whilst growing market share” he continues.
Bruce says there is also evidence that the Purplebricks model can be internationalised. “The successful launch in Australia which has performed better than any of the initial regional launches in the UK” he says.
In Queensland and Victoria, the firm reports it attracted £0.57m of instruction fees in the first seven weeks of trading.
Bruce continues: “Although we recognise that the UK market backdrop is tough, we continue to have a confident outlook for the future. We have momentum, a superior, low fixed cost flexible business model and a strong balance sheet, which we will leverage further in the early part of the busier spring market so as to build on our success to date.”
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Graham Norwood you really publish this load of waffle, more of an advertising post than news £6m loss and some how still trying to big it up
He's just reporting what PB have come out with. That's his job, as a journalist, isn't it? You know, to report the news. What would you rather, he made it up?
He's not trying to big up anyone, PB are trying to do that all on their own.
It is the figures they - the biggest UK online agent, whether you like it or not - released to the city, out in the public domain. Of course that is going to be reported on. I can't see how it couldn't be.
You can argue all you want about PB, their figures and how sustainable they are, but they are newsworthy. You can't just ignore them because you don't like them, surely?
£1000 per customer that's a much as some high street agents! in fact I know many places where that is actually more - must be all the "bolt" on's you have to have.....what a surprise.
“Our strong results are testament to the seismic shift that is underway in the estate agency market. I am especially proud that currently we are agreeing a sale every 16 minutes, 24 hours a day and the number of properties sold in the first half is similar to the total number of properties sold during the whole of the previous year”
Who are they kidding? Firstly, the 24 hours rubbish has been regularly debunked. I wish they'd stop saying that. They're not 24 hours, no agent in the country is. I thought the ASA had already chided them over that.
Secondly, the results can be best described as a mixed bag.
Thirdly, why do they persist with this hybrid nonsense? They are an online agent - the biggest in the country. Why are they desperate to position themselves as something they're not, in the same way as CW?
Purple Bricks s not an online agency are not online, they conduct their business in the same manner as a high street agency, they have a sales team, they visit the property and the advertising is the same as every other agent, on Right Move and board, so how can they be an online agency. They are simply an estate agent doing the same job, with the same process, engaging with the same people, the only difference is they are not charging a percentage based fee but a fixed figure - which may or may not be more than some high street agencies charge but it is the concept of a fixed fee, the day of the percentage charge are gone so wake up and smell the coffee and evolve.
We will see just how much like us they are as the market continues to harden.
Mike, Ive worked on their processes. thaye have a website and an online diary - not much else.
As a U.K. Coverage fair play. As a 6 million loss ??? As competing against high streets get real they don't sell as much as what high streets do just they have uk coverage will that change no. The fee with all the add ons won't be much different to other agents outside London.
The guys on the ground are all self employed - its commission only sales (well, listings). They are encouraged, if not forced tpo sub-licence territories once they have built them. The coverage they are achieving may not be very stable, and the model is fraught with problems for the individual on the ground.
Being a accountant I am always interested when figures come it at £18.7m with a budget of £18.6m.
Check the accounts for accrued sales. The Average fees seem to question the advertising!
Are there any figures for average salaries of staff & 'sub contractors'. Be interesting to see the average length of service of 'the local property people'. If people are staying they will be selling homes!
So we will see, in 24 months where it is working or not.
Yes I thought as much :)
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