Yopa’s latest accounts for 2022 have revealed a “material uncertainty” that the business could continue ahead of a restructure in 2023.
The online agent has published its latest annual accounts for the 12 months to 2022, showing its losses increased from £4.6m in 2021 to £6.8m a year later, attributed to “hardening conditions” in the housing market due to political and economic uncertainty and Kwasi Kwarteng’s disastrous mini-Budget.
Total group revenue was £17.7m, down 5% annually, but the reports also shed more light on the recent restructure of the business, showing it is dependent on shareholder funds.
A note in the report highlighted that under a base case scenario and “reasonably possible” downside scenario, the company would require additional funds from shareholders Daily Mail Group Ventures and Grosvenor Hill Ventures to meet its liabilities for the full year 2023.
The report shows Yopa was acquired by Andor Holdco, a company jointly-owned by Daily Mail Group Ventures and Grosvenor Hill Ventures last year. It was funded by its shareholders and provided Yopa with a £3.1m loan in January 2023, increased by a further £1.7m in August to give the business “sufficient funds until it reaches breakeven by 31 December 2024.
The report highlights that Yopa’s exposure to the housing market and broader economic environment, and the need for working capital from its shareholders on a day-to-day basis, means there is a “material uncertainty” that may case “significant doubt” on tis ability to continue as a going concern.
However, Yopa said it was still appropriate to file the accounts on a going concern basis due to the Daily Mail Group and Grosvenor Hill Ventures’ commitment to support the business.