Purplebricks UK reports its first profit
21 Dec 2016
Purplebricks Group, a growing online real estate company in the U.K., released figures for the six months to end-October showing it had slipped into the black in the period for the first time since its launch in 2014.
Total revenue, including revenue generated by its recently launched Australian service, soared 159 percent to £18.7 million ($22.4 million U.S.) for a net profit (at the U.K. business) of £300,000 from a £6 million loss in the same period last year.
Purplebricks’ share price jumped 19 percent to 125 pence per share in the wake of the good news.
Since its inception two years ago, Purplebricks has aimed to bring an innovative and cost-effective approach to the market, which is attractive to both buyers and sellers. Claiming to save the average U.K. seller £3,035 (£6,267 in London) over a traditional, high-street agent with his fixed-fee charges and online-only model, it’s easy to see why the company’s claim for gathering momentum is turning into more than just words.
It wasn’t clear how much of the revenue of £18.7 million was contributed by the new Australian business.
CEO Michael Bruce commented on the results, by saying the numbers reflected “the seismic shift that is underway in the estate agency market”.
On future growth prospects, he said, “We have momentum, a superior, low fixed-cost flexible business model, and a strong balance sheet, which we will leverage further in the early part of the busier spring market, so as to build on our success to date.”