Purplebricks: UK revenue up 81%, 630 LPEs and 74% of ...

Purplebricks says it enjoyed an 81 per cent growth in revenue in the UK the year to the end of April and claims to be selling more than three times the number of homes of its nearest rival.

In a statement to shareholders, the firm says group revenue more than doubled across the world, up 101 per cent in the year to the end of April; within that, UK revenue is up 81 per cent with the average income per UK instruction up seven per cent to £1,168.

The total number of UK Local Property Experts is 630 from 440 a year earlier - however, City analyst Jefferies says the 630 figure is actually lower than the 650 Purplebricks reported some six months ago.

Purplebricks also says in its statement today that it has sold and completed on £9.7 billion worth of UK property in the full year being reviewed with a further £3.7 billion sold subject to contract.

The company states it has sold 3.1 times the number of properties sold by its closest (unnamed) rival in UK agency - a proportion that accelerated to 3.3 times in the second half of the year under review.

It also says it now has the industry's highest level of conversions to sale and generates an average uplift of £6.000 on properties sold in the £250,000 to £300,000 range.

It claims a 74 per cent of the UK online market share “while online [is] continuing to grow share of total market.”

Purplebricks’ UK EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization, a key figure for measuring business activity - shows a 394 per cent rise in the year, to £8.1m.

However, the figures show pre-tax losses of £26m, up from £6m 12 months earlier, on higher marketing and expansion costs. During the year Purplebricks spent £42m on marketing costs as well as expanding in Australia and north America.

Looking ahead, the agency says group revenues for the next 12 months expected to be in the range of £165m to £185m “with medium term expectation of exceeding 10 per cent of total UK market share.”

"We have doubled revenues in tough markets, taking market share as we continue to win over consumers to the modern way of buying and selling property” claims Michael Bruce, group chief executive, in a note to shareholders.

“As the latest independent UK research by TwentyCi released July 2018 shows, we sell more of our properties and complete faster than any of the top 10 largest agencies in the country, saving consumers thousands of pounds in the process.

“We are confident that Purplebricks' market leadership will continue, given the strength of its brand, the continuing investment into team, technology and processes and our £153m war chest for global growth, following the strategic investment by Axel Springer.

“Purplebricks' goal to build a modern global estate agency business demonstrates unrivalled ambition and, in just four years, huge progress. We look forward to the years ahead with excitement and confidence."