Property group grows revenues by 150%

Online estate agent Purplebricks has increased revenues by 150% as its ambitious expansion plans deliver market share.

The Solihull-based group has established itself as a major player in the UK, through high-profile marketing campaigns, and is also making progress in Australia and the USA.

Purplebricks chief executive Michael Bruce said: “We have had a great first half, with strong trading, significant strategic progress and substantial operational upgrades.”

Its first half performance has resulted in the group raising its revenue guidance by 5%, to £84m, for the current financial year.

Group revenue increased from £18.7m to £46.8m in the six months to October, although the investments in launching and growing its overseas operations resulted in an operating loss for the group of £8.2m.

However its UK business made an operating profit of £3.2m, compared with a small loss for the same period last year.

“The UK business continues its rapid top line growth, which is driving a strong increase in profits and margin expansion,” Bruce said. “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.”
 
Nearly £7m of revenue came from its overseas operations, almost all from Australia. Purplebricks launched in Los Angeles in September and plans to begin operating in San Diego, Sacramento and Fresno in January.

Bruce added: “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.”