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TODAY'S OTHER NEWS

Analyst predicts Purplebricks will report increased losses this week

Purplebricks is reported to be set to reveal increasing losses when it issues its full-year financial results to the London Stock Exchange on Thursday.

Only yesterday Purplebricks surprised the market with an announcement that it had acquired a Canadian fixed-fee agency, marking a new region for the hybrid’s activities following the UK, Australia and US. 

However, business publication City AM reports that S&P Global Market Intelligence believes Purplebricks’ losses - when reported this week - are expected to be £22m for the year, up from £6m last year.

S&P Global Market Intelligence is also reported to predict that revenue for Purplebricks weill have doubled to £93.74m, up from £46.7m last year.

Earlier this year Swiss bank UBS warned that Purplebricks’ meteoric growth in the UK may be slowing because of the sluggish housing market.

“Our latest UBS Evidence Lab property listings tracker up to March 5 2018 indicates that growth may be slowing for Purplebricks, with 'Subject to Contracts' market share remaining broadly constant at circa five per cent since September 2017” it said in March this year.

Purplebricks shareholders appeared uncertain as to what to make of the agency’s announcement yesterday that it had purchased a similar - but much longer established - hybrid listings platform in Canada for £29.3m.

The Canadian operator, DuProprio/ComFree, offers near-identical services to sellers as does Purplebricks; the latter says it’s going to pump in an estimated £15 in new investment. Purplebricks will not be using its own brand in Canada in the immediate future.

Purplebricks’ share price in the UK yesterday closed down just over 4.5 per cent at 310p.

  • Kit Johnson

    And in other news, a young boy in a crowd yesterday noticed the visiting Emperor was wearing no clothes.

  • Chris Arnold

    Whilst 27% of high street agencies are struggling, it's nearer 100% for online. If the financial sector had a shred of common sense, the plug would have been pulled for the likes of PurpleBricks , eMoov and their ilk long ago.

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