Purplebricks has this morning revealed what it calls “immediate and significant measures to preserve cash and implement a lean operating model” during the Coronavirus crisis.
It says it has instituted a number of cost-saving measures, including reducing supplier costs and overheads, suspending all TV and radio advertising, and calling on the government bail-out Job Retention Scheme.
It says it currently retains around £35 million of cash on its balance sheet and has no debt.
“Following these stringent cost cutting measures there will be a materially reduced level of cash burn if revenue is significantly reduced over a sustained period of time” it says.
Purplebricks says it’s no longer a hybrid agency and is effectively a fully online operation: the entire business is working from home and operates “a complete online model encapsulating video valuations, virtual viewings and connecting customers with potential purchasers via the Purplebricks online platform.”
Customers are also still able to list properties, providing their own photography and property details, it says.
The news - which came in a trading statement to shareholders at 7am - adds that the company obviously expects revenues to be below expectations for the full year to April 2020.
It concludes: “The company believes its flexible, digitally-led operating model leaves Purplebricks positioned for long-term success.”