The delayed full year accounts for the high profile, but troubled, agency business of Purplebricks have just been published.
The company is under pressure from a serious downturn in instruction levels and has an activist investor, who owns around 4% of the business, vocally calling for its chairman, Paul Pindar, to be removed.
As expected, revenues are down to £70m from £90m in 2021,
Gross profit is down 27% from £57.7m to £42.1m
Adjusted EBITDA is minus £8.8m and the overall loss from total operations is £42m. This contrasts with a profit of £6.8m in 2021.
Total fee income was £63m, down 28% on 2021 and instruction level was 40,141 units, down 31% from 2021.
Average revenue per instruction remained almost static at £1,568, compared to £1501 last year.
Cash balance stand at £43.2m, down from £74m in 2021.
Helena Marston, CEO, commented:
“Last year’s financial performance was significantly impacted by the challenges resulting from the implementation of our new operating model and investment in marketing that did not deliver the expected results, alongside a housing market which played against us. Nevertheless, our performance was not good enough.
“I have today set out my plan to improve the performance of the business. Central to our plans are initiatives which we expect to drive higher instructions, grow revenues, reset our cost base and raise standards.
“We have already taken decisive action. We have completed a substantial cost-reduction programme, re-trained all our field agents to raise standards and improve conversion, increased our prices and removed the Money Back Guarantee, adopted a more targeted sales and marketing plan, and dramatically overhauled our processes and procedures. We are also assessing additional revenue streams including our new mortgage proposition which we expect to launch by the end of this financial year.
“I am convinced that the potential for Purplebricks is huge. We have a proposition which is more relevant and valuable for our customers, as well as a brand which is the best known in the industry. I’m confident that the actions we are taking this year will set us on a clear path towards a return to sustainable, profitable growth.”
Purplebricks share price stands at around 14p, a very long way from the heady days of 2017/18 when it almost touched 500p.
Purplebricks told to remove chairman by early August or face emergency meeting
Comments (11)
Dick & Dom have gone very, very quiet. I kind of miss them.
It amazes me that PB have lasted as long as they have. All that sneaky advertising certainly conned more gullible people than expected but the fuse is now getting dangerously short. What a ‘Boomin’ nightmare!
“alongside a housing market which played against us” ?!?
That housing market was very much in their favour with most houses selling so easily. Their process is flawed as are their agents and management.
The upcoming HRMC fines and the class action suit will see them buried.
44/((74m-44m)/12) = 17 months — would all passengers make their way calmly to the muster stations please
its just a gravy train of those at the top until they get kicked out or run for the hills
Continue with that rate of cash burn and it’s all over in less than 12 months.
Just wow. No wonder Vic Darvey left….
These are truly horrific numbers in what has been a bonkers market. I am amazed more snr mgt haven’t been let go.
Wow the arrogance is staggering. The facts are this. Majority of the good agents have gone, very few good agents remain. The new breed left behind are the ones screaming to the rooftops how many instructions they have won, not a mention of how many they have sold! But then who cares what you actually sell when there is no incentive whatsoever to sell! incompetent area directors full of self importance awful senior partners with no idea how to iron a shirt let alone inspire a team A toxic cocktail of burnt out over worked Lpe / Lpa with a sprinkling of arrogant list and never speak to the customer again “top agents” 42m lost in the best market we’ll see this decade, wasted by the senior management team hell bent on ignoring the fact they are upto their neck in sinking sand. Only a matter of time before PB is gone!
Commisery
If PB was an animal, the kindest thing would be to put it out of its misery.
Operating loss of £42 million…..£42 million…an incomprehensible and reckless amount of money to lose in one of the greatest housing markets we will ever see.