Purplebricks says it is receiving an average revenue per customer of £1,000, has more than doubled instructions and is now generating its ‘maiden profit’ on its UK business.
In figures released to the City this morning based on six months’ trading to the end of October, the hybrid company says its revenue grew 159 per cent to £18.7m, exceeding full year 2016 sales target of £18.6m.
There are now 329 Local Property Experts - the agency’s ‘people in the field‘ - having grown from 124 a year ago.
That maiden profit is modest - just £300,000 - but comes after Purplebricks’ loss of £6m in its previous trading update. On a group level, including its international activities, its overall losses have dropped from £6m to £2.2m. Instructions are up 108 per cent and average revenue per customer up 20.6 per cent to £1,000.
It claims to have sold and completed on £2.589 billion of property in the past half year - sales agreed subject to contract add up to a further £2.521 billion. It says it is agreeing a sale every 16 minutes, 24 hours a day.
“Our strong results are testament to the seismic shift that is underway in the estate agency market. I am especially proud that currently we are agreeing a sale every 16 minutes, 24 hours a day and the number of properties sold in the first half is similar to the total number of properties sold during the whole of the previous year” says chief executive Michael Bruce.
“These results demonstrate that the business model is working, with the UK generating a maiden half-year adjusted EBITDA [earnings before interest, tax, depreciation and amortisation] profit whilst growing market share” he continues.
Bruce says there is also evidence that the Purplebricks model can be internationalised. “The successful launch in Australia which has performed better than any of the initial regional launches in the UK” he says.
In Queensland and Victoria, the firm reports it attracted £0.57m of instruction fees in the first seven weeks of trading.
Bruce continues: “Although we recognise that the UK market backdrop is tough, we continue to have a confident outlook for the future. 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.”