Strike has fallen further into the red, its latest annual accounts show.
The online agent’s financial statement for the 12 months to March 2022 shows losses in its profit and loss account increased from £54,229,520 to £72,495,160.
It comes as Strike is in talks about making an offer for online rival Purplebricks.
The accounts show headcount at the business rose from 154 employees in 2021 to 367 in 2022, while director remuneration increased from £417,195 to £445,735.
Since this period, Strike has gone through a round of job cuts, as revealed in January.
A note in the accounts also revealed that the company received a £16.75m loan from investors – at a 12% interest rate - in January and has prepared forecast for the period to 31 March 2024, “which indicates the company can continue to trade within its cash resources for the 12 months following the signing of these financial statements.”
The statement was signed off in March 2023.
The note said the company has noted areas to mitigate budget risks during this period.
Meanwhile, the brand’s financial services business also saw losses in its profit and loss account quadruple on its balance sheet from £433,498 to £1.96m.
A note in the Strike Financial Services accounts said the parent company Strike Limited has pledged “sufficient liquidity” to cover liabilities if the brand can’t up to March 2024 and said its forecasts show the business can trade within its cash resources for the 12 months to next March.
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Purplebricks business model, take cash at point of listing and never make a profit. Strike business model sell property for free and take cash from bolt on revenue streams and never make a profit.
Add them together and maybe you get to burn even more cash, more quickly until the bonfire of vanities is so large all the investors realise they have torched all their funds and can move on to a model that day one makes profit.
All Strike did was bought for a brief moment market share with investors cash, and guess what, when the cash runs out so does the market share - genuis. The only winners live in the c-suite.
You have to wonder at the sanity of those that invested £12 million plus with a company that is loosing so much money or am I missing something as I seem to remember the same thing happened with Purple Bricks, Madness🤔🤔🤔
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