Purplebricks made a pre-tax loss of £6.4m in the six months to October 31 last year, the firm reported this morning.
The loss was higher than for the same period in 2014, when the figure was £2.5m
In its first set of interim results to the City after floating last month with a value of £240.3m, it also emphasised that it had become the UK’s fourth largest estate agent within 18 months of launch, spending over £1m per month on sales and marketing.
As EYE reported yesterday, Purplebricks is currently trading at 22 times the profit that the firm – run by Michael and Kenny Bruce – is forecast to make next year.
The company said this morning that revenues for the first half of its financial year were £7.2m, up 777% on the £0.8m it made in the same period in 2014, with a gross profit of £4.1m, up 814% on the £0.4m gross profit for the year before.
Purplebricks said it had a strong end to the first half of last year, with October revenues year-on-year up 579%. It completed its full national roll-out by launching in London in July and in Scotland in November.
Recruitment of its local property experts increased, to 150 by the end of last October. It plans to double this number by April 2017.
It also launched an in-house data sales unit in October, to develop and analyse the database to drive sales. It said that early indications show that it is generating new leads and instructions.
As well as claiming to be the fourth largest estate agent, it said it had increased its online market share from 43% in April 2015 to 60% by the end of October.
Purplebricks also told shareholders that trading in the second half of the financial year “has started well with a 275% year-on-year increase in the number of instructions, with January alone currently at 1,660 and expected to exceed 2,000”.
Chief executive Michael Bruce said: “We have made great progress across the business in the last six months, culminating in our listing on the AIM market in December.
“The money raised will be used to deepen our national coverage through the recruitment of top quality local property experts and further investment in technology and marketing.
“This will build on our position as the number one next generation estate agent.”
He added: “Our compelling proposition of personalised, high quality service and affordable fees provides the best of both worlds, resonating with a growing number of customers and posing a fundamental challenge to traditional estate agents, who currently dominate the £4bn market.”
And they’re out – Interim results – RNS – London Stock Exchange http://bit.ly/1SHL86m
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60% of the online market eh?………not convinced the the 4th biggest and all that guff though
Very impressive indeed and sort of proving the point that if you have enough money you can win the budget sector.
As its Agents Mutals first birthday today it would be nice to look back at other stuff from a year ago and see who got forecasts / boasts / claims etc right a year on?
Wasnt that odd lad @easychris telling us how it was going to be a year back, I’m also sure some other 1 man press releases were going full pelt with various predictions along with Ms Beeney and Co?
Jonnie
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Did Walt Disney write this story??? Investors get down there you can’t miss this opportunity to make a fortune!
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……and not a word about the share price………
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Yep, current market cap 180m, some 60m less than float date. What a bargain…
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“with a gross profit of £4.1m, up 814% on the £0.4m gross profit for the year before.”
Ermm – That’s the revenue – But when you deduct the marketing spend to get the ‘Net Profit’… they’ve racked up £13million of losses to September 2015…
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I’m no supporter of PB, and think the AIM valuation of this company is completely crazy! However, look at what the financial update today says about instructions. They’re suggesting c.2,000 for January. If that’s right and they keep growing revenues like this, they will become profitable in the not too distant future.
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“They’re suggesting c.2,000 for January. If that’s right…”
That’s the biggest IF since ‘ifs’ were invented, I would suggest…
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I understand where you’re coming from PeeBee. However, it’s a very different matter when you issue trading updates in a regulated market, than saying that kind of thing to a journalist. So if you’re suggesting PB are trying to mislead the market that would be a VERY serious matter.
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Yes it would be…
…wouldn’t it.
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Further comment may cause me to unintentionally break a promise to a dear friend – so I won’t.
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How are 150 agents ‘local’ to the entire country ?
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How about you ask ASA. Or Trading Standards.
Both seem happy with the claim…
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“As well as claiming to be the fourth largest estate agent, it said it had increased its online market share from 43% in April 2015 to 60% by the end of October.”
I see they are still using the small print support from Which magazine and stats as of 2011. Hello it is 2016. I still complain that as they do not offer No sale = No Fee, they cannot be compared to the High Street agents they keep knocking and misrepresenting as a comparison.
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Re: “January alone currently at 1,660 and expected to exceed 2,000”.
I just had a quick look at these instructions on rightmove and I noticed about 20% on the last 1,000 instructions are price drops so from the 15th Jan to date that’s 800 new instructions.
Therefore their suggested 1600 new instructions for the month could be true.
I would imagine you would need a heck of a lot of people to manage these vendors in the call centre.
and they charge how much to sell?
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How do you know they are including price drops Property Daddy? That would constitute a deliberate attempt to mislead!
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I been lookin ain’t I?
wot I did was is look at a few page results on RM for PB only stock, then noticing on the 10 properties per page an average of 20% was price dropped and the other 80% was new to market. So 1,000 properties = probably 800 new and that dated back to 15/1/16 so based on their own suggested 1600 it looks about right.
But my point is, with that many houses for sale you are going to need an awful lot of people to manage that many vendors cos if you don’t they get P155ed off and that sets back your business cos everyone will fink your a fecking waist of time.
just like the last two instructions I took off PB a little while back.
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Totally agree with your point on customer service. I’ve heard it’s pretty poor from actual customers.
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“…an average of 20% was price dropped and the other 80% was new to market.”
Define “new to market” please.
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Okay… put another way –
Would you say that THIS fits your “new to market” category:
http://www.rightmove.co.uk/property-for-sale/property-54502292.html
or what about THIS one:
http://www.rightmove.co.uk/property-for-sale/property-52558225.html
‘cos they both say ‘added today’…
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Suggested reading is The Directors Talk Interviews. This tells you absolutelly everything you need to know about the methods and the strategy.
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Figures are Laughable…… You can’t make money netting around £500.00 to sell a house…Full stop….End Of. The brand is so reliant on a massive marketing spend due to having no Offices and no local profile other than the boards that are out. Once the marketing spend dries up the boards will come down PB will have no real presence within the community…….add to that a tougher market which is just round the corner and it will have no longevity. PB are already being undercut by Tepilo and Easy Property. Its irritating for us High Street Estate Agents but I say again you cant sell houses for a nett fee of around £500.00 and make money. 150 “Property Experts” at £30k a year is £4.5 Million PA. Add £12m in marketing costs……… numbers don’t add up !!
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