Purplebricks claims 4% market share but admits revenue stays flat

Purplebricks has this morning released a brief and relatively downbeat trading statement to the City and its shareholders.

The statement applies to the six months to the end of October and reads:

“During the period, there was a weakening in the overall UK property market as political and economic uncertainty impacted confidence, reducing home sale volumes. This was particularly notable in the South East.

“Against this backdrop, Purplebricks maintained its 4% overall market share and also expects to report an improvement in the marketing-to-revenue ratio as planned efficiencies are now being realised.

“The Canadian business modestly outperformed expectations over the period.

“At a Group level, pro forma revenue is expected to be broadly flat relative to the same period last year and the significant losses incurred in the prior period have now been reversed and the Group enjoyed profitable trading in the First Half.

“The Company will announce its interim results and also update on the strategic initiatives flagged at its full year results in July 2019, on Thursday, 12 December 2019.”

This morning's statement - which makes no explicit reference to the firm's costs of closing its disastrous US and Australian activities - was the first from the agency since a ‘hush hush’ increase in UK fees a few weeks ago.

Purplebricks charges rose by £100 - from £899 to £999 around most of the country and from £1,399 to £1,499 within London and the M25.

As before, this pricing includes VAT, photography, floor plans and listing on the key portals Rightmove and Zoopla; other services will cost more.

In case you missed it a few weeks ago, Estate Agent Today took a detailed look at Purplebricks' Canada operations and how, as this morning's statement suggests, they may have been 'a secret success' for the troubled firm: you can see the story here.