Purplebricks: revenue soars as agency claims 74% of o...

Purplebricks’ latest trading statement for the six months ending October 31 claims a large rise in revenue, its number of UK Local Property Experts increasing significantly - and it says it now has a 74 per cent share of this country’s online agency sector.

The figures also suggest improved performances in its international activities in Australia and the US.

- Group revenue up 150% to £46.8m;

- UK revenue up 118% to £39.9m;

- UK online share now 74%;

- UK business adjusted EBITDA increased to £4.7m;

- Average UK income per instruction up 14% to £1,138;

- Number of UK Local Property Experts rose 107% to 650 as at 12 December.

- Australian revenue increased to £6.8m;

- Average income per instruction in Australia $5,282 AUD;

- Number of Australian Local Property Experts rose 600% to 105 as at 12 December.

- Commenced US expansion ahead of plan, with Los Angeles in September;

- “Solid progress” in terms of local real estate experts (LREEs), currently totalling 40;

- Valuations booked, instructions secured and completions via our Escrow (conveyancing) business;

- Launches in San Diego, Sacramento and Fresno in January 2018 along with engaging a further 18 LREEs.

However, once again there is no data being provided on sale completions.

Commenting on the results, Michael Bruce, Group CEO, says: “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.

“As a result of our continued success we have seen the highly customer engaged Post Sales Support team more than double, the Conveyancing Sales team grow by more than 80% and our Purplebricks Concierge team expanded, with a view to them covering the whole of the UK.

“We have also made considerable strategic investments in people to support both UK and global growth. Our team in the UK, excluding LPEs, is now 375 strong. 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 by 5% from £80m to £84m.”

Meanwhile Purplebricks has yet to comment on the news - reported on Estate Agent Today yesterday - that the allAgents website has reinstated a number of disputed reviews about the agency’s performance, according to some customers.

allAgents also says it has also reinforced the process for the posting of Purplebricks’ five-star reviews, after 50 per cent of the reviewers failed to respond to allAgents’ checks.

The two parties been involved in a long-running dispute over the validity of negative reviews, with Purplebricks allegedly threatening legal action against the Glasgow-based review firm.

You can see the reinstated reviews here.