Purplebricks sells its Canadian business for £35m...

Purplebricks is selling its Canadian business.

The sale comes little over a year after the troubled agency closed both its failed Australian and US operations.

An announcement regarding the Canadian sale came on the London Stock Exchange this afternoon; it said the disposal would allow it to concentrate on its UK business.

Here's the full announcement:

"Purplebricks, the leading UK hybrid estate agency business, today announces that it has completed the disposal of its Canadian business, which includes the DuProprio and Purplebricks Canada operations, to the Desjardins Group, a Canadian cooperative financial group, for cash proceeds of $60.5m Canadian Dollars (approximately £35m), subject to minor adjustments for completion working capital and completion debt, and which includes repayment of intra-Group debt owed by PBDP to be repaid to Purplebricks immediately following completion.

"The disposal of PBDP simplifies the Group's operations and fits with its strategy of focusing on its core market in the UK, where there is substantial opportunity to grow its market-leading hybrid model. Following receipt of proceeds, the Group will hold a net cash balance of £66m. The net proceeds will be used to further strengthen the Group's financial position and invest in its UK business.

"The agreement for sale includes customary terms and conditions for a transaction of this nature, including customary representations, warranties and indemnities given by Purplebricks to the Desjardins Group as well as certain restrictive covenants provided by both Purplebricks and the Desjardins Group. Purplebricks will grant PBDP a licence to continue to use the Purplebricks brand in Canada for a transitional period until December 2021.

"PBDP had an adjusted operating loss of £(2.8)m for the 10 months ended 30 April 20191 and the book value of its gross assets as at 31 October 2019 was £11.4m.

"Vic Darvey, Chief Executive Officer commented: 'Over the last 14 months, Purplebricks has reset its strategy to give the Company a strong foundation for the next phase of its growth. The Company's hybrid, digitally enabled model is more relevant than ever and this simplification of the business will allow management to focus its time and the Company's resources on delivering growth in the core UK market. The Board wishes the teams at DuProprio and Purplebricks Canada the very best in their new venture - and I would like to thank them personally for the collaboration and mutual sharing of knowledge and expertise over the last couple of years.'"