Technology group raises the roof on its growth plans
Purplebricks says it will nearly double its UK revenues this year and benefit from its overseas launches as it looks to raise the roof on its growth expectations.
The online estate agent is significantly increasing its marketing spend as it looks to build on the momentum it is currently enjoying that has put it in a “strong position to become the number one estate agent in the UK for both listings and sales”.
Its UK has recorded its first full year operating profit, its expansion into Australia is following a similar growth curve and it will launch in the United States in the coming months.
The Solihull-based business was founded in 2014 and has enjoyed phenomenal growth, using technology to disrupt the industry.
Its full-year figures show it increased revenues by 151%, to £46.7m, in the year to April. Its adjusted EBITDA, a measure of profitability, showed losses more than halved from £9.7m to £4.5m as its UK operations build on the foundations.
But it expects the UK alone to deliver revenues of £80m in the current financial year, with Australia forecast to more than treble to £12m.
“This has been a very successful year in the early development of the Purplebricks model and brand,” said Purplebricks’ chief executive Michael Bruce.
“We have materially grown our national footprint and have built a growing brand awareness and reputation for delivering customers a more convenient, transparent and cost effective service.
“In tandem with our growth we have invested in the business and strengthened the management team.”
Investors responded positively to the figures, with Purplebricks’ share price up 5% in early trading to 419p, close to its all-time high. It has a market value of more than £1.1bn.
Purplebricks has been operating in Australia for eight months and is now in five states, which are home to 85% of all property transactions in the country. It will begin its American launch in California in the second half of 2017 and said its plans “are progressing at pace”.
The group is confident that its marketing campaigns – which include its Commissery campaign, which transferred over to Australia last month – “has resonated with consumers”. In response, it is increasing its UK marketing spend by £3.5m in the first half of its 2018 financial year.
