Figures lodged at Companies House by online agency easyProperty suggest parent company EProp Services will seek additional funding this year.
A strategic report attached to the firm’s figures, written by chief executive Rob Ellice, says that during the year to September 30 2016 the group raised £16m through the issue of shares.
The figures give a fascinating insight into the funding required to set up an online operation.
In the year in question easyProperty had a turnover of just under £875,000 and a gross profit of just above £492,200 but the pre-tax operating loss was over £11.3m.
The figures show its total comprehensive loss for the year was £10.94m; a year earlier, between September 9 2014 and September 30 2015, its total comprehensive loss was some £6.7m.
In his statement accompanying the figures, Ellice says the year to the end of September 2016 was “a period of further development for the business” but at “a lower rate of growth than anticipated.”
However, he believed easyProperty’s technology to be more sophisticated than its competitors, and stressed that “at this stage of their lifecycle it is generating start-up losses as it uses working capital to develop the business.”
He goes on to say that: “It is expected that the group will require additional funding in the foreceeable future, which is deemed to be 12 months from signing the financial statements” - which were signed on December 15 last year.
EasyProperty operates in the residential sales and lettings arena, and in commercial property.
Last September - a fortnight before the end of the year referenced by the figures - easyProperty said it had exchanged contracts on a £35m property portfolio, which at the time was thought to be the largest deal carried out by an online estate agency.
The off-market transaction was for a mixed-use portfolio including 208 properties across London and Essex – 114 of which were residential.
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What a mess. They've raised so much money and then lost so much. Doesn't look good. easyProperty has been around for a while now, but I don't think I've ever seen a board. All that fanfare, cash and hyperbole a couple of years ago really does seem silly now.
A couple of years ago I put £5k into that. Daaaamn..
£16m raised, nearly £18m losses in 2 years to create a £875k turnover. You have to wonder if that money would have been better spent acquiring portfolios/companies and going from there. Their fund raising was bizarre- especially the tiny equity they offered through crowdfunding for a lot of money- those investors got burned bad. The mask is slipping on so many of these services with only the best surviving.
You have to also wonder, if/when a 'digiital only' service can be proven to be profitable, what is to stop every agent simply rolling out this offering at the flick of a switch- with the infratructure in place to transition to hybrid and full service.
Looks like he might not be driving his Ferrari around for too much longer!
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