Purplebricks builds significant UK profits

Purplebricks has doubled revenues and its UK operation has delivered a significant profit in a year of strategic growth for the business.

The Solihull-based property group has expanded into Australia and is now rolling out launches in the USA.

Revenues leapt to £93.7m, of which £78.1m came from the UK. Adjusted EBITDA, a measure of operational profitability, increased from £1.7m to £8.1m in the UK.

Heavy investment in marketing – it spent £42.1m in the year to April – resulted in an adjusted EBITDA loss of £19.6m for the group.

Michael Bruce, Group Chief Executive, said: “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.”

Earlier this week, Purplebricks bought Canadian estate agents DuProprio/ComFree (DPCF) for £29.3m – a deal made possible by a £100m investment by European publisher Axel Springer announced in March.

“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,” said Bruce.

“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.”