Purplebricks recorded significant losses in the year it was acquired by rival firm Strike, newly filed accounts reveal.
The online estate agency ’s pre-tax losses more than doubled, rising from £19.4m to £37.8m in the 12 months to 31 March 2024. During the same period, turnover increased from £13.2m to £31.1m.
The accounts were filed nine months after the Companies House deadline, prompting questions over the delay.
In a statement, the company said: “Completion of the 2024 accounts has taken slightly longer than usual due to the additional work involved following the change of ownership.”
Purplebricks was acquired by Strike in June 2023 for £1.
Accounts for its most recent financial year (to March 2025) are due to be filed by the end of December.
In a statement signed off by the board, the business said: “During the year, the business was subject to market uncertainties resulting from the three further interest rate rises and significant changes in policy imposed by legislative authorities which impacted performance in the year.
“The housing market slowed and mortgage lenders amended product offerings and further increased mortgage interest rates.
“In late 2023, following the transfers and the creation of a consolidated business, a review of the business structure and cost base was initiated.
“Post year end, the business and management have continued to refine the business model and review the cost base to best serve the products offered to customers.”
On its current trading, Purplebricks commented: “The business continues to operate as an online estate agent, providing customers a fairer way to sell their house.
“Since the year end the group has continued to evolve its product offering to ensure customers save money, benefit from our expert estate agents and can choose a package and payment option to suit them.”
Stuart Bartlett, CEO of Purplebricks, added: “These accounts reflect historic challenges inherited by the new ownership following the acquisition of the business in May 2023.
“The new leadership team is fully committed to investing in the long-term success of Purplebricks.
“Significant improvements to our performance and operating model have already been made in the period following the reported accounts.
“While we recognise that a full financial turnaround takes time, we are confident in the direction the business is now heading.”
You have to think that it is a very high hill to climb to get out of the massive loss making position they are in. It is a very tough market and sellers want an experienced pair of hands to manage their sale, I cannot see what PB has to offer. The days of sticking it on the market and sifting through the buyers clamoring to buy is long gone, it is real graft now.
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Only works in a high volume bull market where you take a few snaps and Rightmove does the job. We’re a long way from that.
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No Bull!
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How much longer before the plug is pulled on this?
And how is this even legal? Pouring millions upon millions of investors money down the drain year after year simply cannot be right. It certainly isn’t ethical, and I’m astounded as to how anyone is even fooled by it.
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Neil you are so right, is it really that easy to raise large sums of cash from investors? All I can say is they obviously don’t have any idea about estate agency and do not do much due diligence. I have a cunning plan to make lots of money, perhaps I should contact the investors!!
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