In the wake of media froth about Purplebricks’ announcement this week that it is reviewing its charging model, a key performance indicator in its year end results went by largely unnoticed.
Hit by the Covid-crisis at the end of its financial year, the UK operation’s level of instructions fell by 23% year on year, from 69,892 to 53,680.
This reduction was partially offset by a 12% increase in average revenue per instruction (ARPI) to £1,394
(FY 2019: £1,243).
Of course the figures could bounce back as the post-lockdown market takes off but losing such a high percentage of instructions is bound to impact the rest of 2020 performance.
Group revenues were down 2.4% to £111.1m and the group operating losses were up.
The Group holds £31m in cash, down from £62.8m in 2019.
UK revenues were down 10.7% to £80.5m leading to an operating loss of £0.2m against a profit of £5.3m in 2019.
Chief Executive, Vic Darvey, said:
“We made an operating loss in the year of £9.4m, up from a loss of £1.5m in 2019, resulting from the fall in revenue as the business was impacted by a declining market and COVID-19.
“Our market share of UK listings for the financial year was 3.9%, and our share of the number of properties sold was 5.1% of the total market.”
Purplebricks says it employs 400 people and 900 self-employed agents across its operations in the UK and claims to have saved consumers £77m commission in the year.
I’d just like the claim the first comment, that’s all.
early bird catches the worm and all that.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Justplain i believe the saying is first the worst… hahaha
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Whoever did the rhyme did the crime!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I surrender to your superior playground knowledge
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Marketing Breaks!!
This is a figure PB never talk about.
checked this morning and just one LPE has 47 on marketing breaks!
Scary numbers and I hope all these customers don’t come flooding back to the market at the same time.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I think they have removed the life time marketing.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“Purplebricks says it employs 400 people and 900 self-employed agents across its operations in the UK…”
900 ? that’s a big increase on the 600 LPEs they had in January !!
“Regrettably, the Group incurred a fine from HMRC for historical breaches of certain aspects of the UK’s anti-money laundering legislation.”
How much was the fine? (CWD were fined £215k and Tepilo £54k for AML breaches)
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Looking through the results I think the fine was 1.6m but there has been no announcement from HMRC yet.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
They saved on staff by making a load of furloughed staff redundant in July. Wonder if they will repay all that money back they claimed from the government When they had 60 something million in the bank and clearly didn’t need to use this scheme to survive.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
When the furlough scheme ends, unemployment starts to rise, and the financial system wakes up to the true cost of the Covid nightmare, there will be a massive impact on the property market. Far worse than 2008. At that point Purplebricks (and, sadly, many others) will fail – regardless of whether or not they change their charging structure.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
We shall see, I’m not as downbeat but as we all know it doesn’t really matter as long as transaction numbers can be made at a survivable level. 2008 was by far the biggest dog this agent has operated in in over 3 decades, compounded by the fact that my patch had a considerable flood mid 07 with all the practical and psychological that go with it, mid 2007 – spring 2009 15 – 20% contraction in our market, but:
We are still here.
In some ways 2020 is the polar opposite of 2008, they are throwing money anywhere and everywhere as opposed to pulling your mortgage offer because you paid an Orange phone bill on a Tuesday rather than a Monday, £20 paid 24hrs late and it’s bad cop, no doughnut.
Equally, our markets are local, selling 200 new build flats in the centre of Leeds is a different set of ifs to selling family homes in Wiltshire.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register