Purplebricks has posted revenue of £64.8m for the six months to the end of October, the first half of its financial year. Most of the revenue, 73%, came from its UK operations and the rest from Canada.
Group loss for the period in which the businesses in the US and Australia were wound down, was £14.1m, down from £27.8m in the same period last year. Pre-tax losses for the six months were £3.4m, up from £3.2m for the same period the previous year.
In the UK, Purplebricks has reported an operating profit of £3.5m for the six months, down 38.6% from the £5.7m it reported in the same period last year.
The interim results, posted this morning, claim that customers “saved more than £150m in commission” in the first half of Purplebricks year.
Purplebricks puts its UK listings market share at 4.1%, and its share of completions at 5.3%. It puts brand awareness in the UK at 97%.
It raised its prices to sellers by £100, and said this morning that it will be trialling a new pricing strategy in the early New Year, including splitting the cost between listing and completion.
In the UK, it brought in £47.1m of revenue, down 2.7% from the same period last year. The cost of sales was £17.1m, similar to the sae period last year, and its gross profit was £30m, down from £31.2m. Marketing costs were £12.3m, compared with £13.5m, and operating profit was £3.5m, down from £5.7m.
It claimed to have had 32,850 instructions, down 15% from 38,619, earning on average £1,353 per instruction.
In Canada, its revenue was £17.7m, up from £15.2m; there was an operating loss of £0.6m, broadly in line with the £0.7m loss it reported for the same six months a year ago.
Closure costs in Australia were £6-8m, and £4-6m in the US.
CEO Vic Darvey, who took the job when previous CEO and co-founder Michael Bruce left in May, said: “We are very pleased with the progress made in the period in light of the market backdrop.
“We’ve seen resilient trading in the first half, with our diverse revenue streams and strong ARPI growth improving the quality of earnings and balancing out declining market conditions.
“We end the first half having now stabilised the business and the significant losses incurred last year have now been reversed with the group enjoying profitable trading.
“Our focus on operational excellence and improvements in our technology-led proposition, along with proactive management of our pricing structure will enable us to continue to achieve profitable growth. We remain confident of meeting our medium-term objective to gain a 10% share of the UK market.”
Intriguingly, today’s report to investors says that Purplebricks management “has a clear vision” that Local Property Experts should earn more than their high street counterparts.
Comments (47)
The UK figures look dire – sales down by more than £1million and costs up by £1million.
PB haven’t got to grips with the UK costs.
I suspect the problem is Google Ads – all those nasty High Street Agents with nothing better to do than browse the PB website via the pay per click listing at the top of a google search 😉
Vic, if you are reading this, turn off google ads – the internet is eating you alive !
“I suspect the problem is Google Ads….”
Actually, the problem is portal costs – those nasty people at RM with nothing better to do than hit their customers with 10% + price hikes every year. 🙂
Vic, if you are reading this, turn off RM – the internet is killing you !
From the presentation:
“The overall fee can be increased further than the £999 and £1,499 if split between publication and completion”
But in order to simply earn the same money per listing overall, based upon a completions rate of 51.6% as indicated in the “coin toss” report by Jefferies, the UPFRONT part of the fee charged to every listing – “regardless of sale” as the old, less-transparent-than-lead, saying goes – will need to increase from £499.50 to £741.26. – or £749.50 to £1112.26 for those in the ever-expanding “London area”.
Therefore those successfully selling will be paying a minimum of £1240.76 (£1861.76) – which equates to an increase of 24.2% on the current offering.
Which could be interesting.
VEEERRRYYYYY eenteresteeng…
They are heading into the realms of many agents fees. The public will see that and be able to notice the lack of presence to a call centre and we all know what consumers think of call centres.
Purple headed bashing I see
The problem with this lot is that the market has turned and they will now be building up a whole load of future pain as they cannot sell the overpriced houses they have accumulated by taking credit agreements from their punters. Let’s face it most of their clients see them as a punt (if not an expensive one).
It will continue to implode, the Lexperts will leave as they are not earning anything like enough and the rise of the realtor will be next (according to some).
Anyway – I am off to vote now, but don’t know who for…………….
“Purple headed bashing I see”
OOOOOHHHHH EEEERRRR, J1 – you are naughty…
PB share price is hovering around 100p level, worth noting if you bought the shares at initial IPO (if that’s the correct jargon) and still held them today you would have made exactly
Zip, nadda, nout bu66er all.
“Zip, nadda, nout bu66er all.”
But, padymagic, in the spirit of fairness – those shareholders should think themselves lucky…
…as that zero return is a gazillion percent better than the percentage profit the company has made in the same period!
“It claimed to have had 32,850 instructions…”
Interesting – the number of listings “Just added” in the period according to the daily totals on Zoopla says a vastly different number.
Anyone care to guess?
Why cant people be happy that someone in our industry is being successful? So much jealousy in the comments. Celebrate success and learn from it helps everyone, especially given how tough 2019 has been for us all
Good grief.
“So much jealousy”
REALLY, Auther Sleep?
I’m fairly certain that on behalf of most it’s a safe bet to say that you’re barking up the wrong tree…
in the wrong forest…
on the wrong continent…
on another planet…
in entirely another universe.
What success woud that be? 32,850 vendors paying for a service that many will not get. Try asking PB to declare what the number of completed sales are.
Good Moring my plump Turkeys, are we ready for Christmas?
The report demonstrates two startling facts and the same old muppets bark on about pumping money into an online business and it will collapse just like emoove and all the other high profile ventures, Wrong….the difference being PB has influential investors with instant access to cash, and lots of it.
Also,
PB has not saved hard working homeowners £150 million in the past 6 months, they have removed £300 million from the high street agent in the past 12 months and will continue to do so whilst increasing market share. The talented agents will continue to grow and those promoting their services on low prices with overestimated valuations will fall by the wayside but not before the Rightmoves and Zoopla’s direct debit their last penny before they disconnect.
Fact……
2020 is when PB generates profit – 100% guaranteed so I would suggest you buy, buy, buy those shares.
We should now all stand and congratulate PB for their innovate business model and wish then all the very best for the future whilst the shareholder look across the table at the plump Turkey and smile with delight.
The future is bright, the future is Purple.
Have a great Christmas and don’t forget to put your answer machine on before you leave at 5pm.
Do you work for Boris Johnson?
Certainly not, Boris has proven he is a winner, while ‘Prophet n Loss’ has always been proven wrong.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
Sides genuinely splitting. What a plonker.
Sdaltaf101
I thought we had wiped you off the soles of our Shoes?
Those bars that you look through, the buckles that dig into your ribs, the siren that sounds ……can you see those Turkeys from your window or are you just looking at a mirror.
Purplebricks – Not just a Turkey for Christmas, Sell, Sell, Sell those Purplebricks Shares and spend your Losses on something worthwhile.
Merry Christmas 🙂
Maybe £200m lost in 12 months Dont forget those who have paid Bricks and had become disillusioned and reverted back to a High Street street agent .Pay cheap ,pay Twice
A fellow PIE user with a brain, and I am sure our Turkeys will be slightly larger than the rest this year…….. All these other silly disrespectful comments come direct from those that are on the receiving end of the success off Purple Bricks. As Purple Bricks grows and invests others will be locking their office doors for the last time like Foxtons did again this week. Good Luck
“A fellow PIE user with a brain…”
“A fellow EYE ABuser with an agenda”, I would strongly suggest be more the truth…
“All these other silly disrespectful comments come direct from those that are on the receiving end of the success off Purple Bricks…”
Proof if needed that you have clue not one what – or who – you are posting about.
“As Purple Bricks grows and invests others will be locking their office doors for the last time like Foxtons did again this week.”
Misinformed… misleading… missing the truth target by a country mile. Those many readers that have been in the industry for more than one ‘cycle’ of its’ history are no doubt laughing at your blatantly ignorant attempt at giving Purplebricks any credit whatsoever for traditional office closures.
Nothing more than a joke from a joke. Speaking of which…
“I am sure our Turkeys will be slightly larger than the rest this year…”
Oh, there is no doubt whatsoever that we have two prize turkeys on EYE – you and Prophet’n’Loss…
…so we at least agree on something.
In the UK, it brought in £47.1m of revenue, down 2.7% from the same period last year. The cost of sales was £17.1m, similar to the sae period last year, and its gross profit was £30m, down from £31.2m. Marketing costs were £12.3m, compared with £13.5m, and operating profit was £3.5m, down from £5.7m. Instructions down 15%.
Share price closed today lower than it started and a big bang is on the way in 2020. No dividend for your fellow investors, so what’s in it for them to stay with a lame horse …. absolutely nothing, other than run the risk that share value will now sell with a loss (just mention PB and its all loss!) and it is unlikely to recover.
Dress it up as much as you like Prophet ‘n loss … its all downhill and completely destroys all the garbage you have been spouting, all year. £3.5m operating profit Lol from £47.1m. You were correct on one thing it did take off ….. downhill.
The real facts are that as a profitable business they are not and on the threshold of collapse. They may have taken revenue in the UK but there is not sufficient banked money for a recession or other contingencies such as litigation (still awaiting to hear what that was all about) or regulatory fines apparently on the horizon within their declared profit and loss.
it is reported they will need to spend £14m by the end of 2020 to have fully closed down overseas operations in USA and OZ.
The business model has not changed and is after so many years clearly showing the high risk for success. It just about uses up all its revenue to tread water and according to them for a 97% exposure can only achieve 4.7% market share in the UK. That is a massive fail. As they are using the first half years results, it will be interesting to see the second half, which everyone knows for the market is poor.
After a short insignificant spike on this morning share price it is also now going down (another down Davehedgehog) so the city are not impressed and suspicious of next half years results, particularly as their instructions are already down 15% which is a big drop in a further receding market.
Ah but the model has changed !
When they first launched their fee was a very cheap looking £599, a real differentiator against most High Street Agents. That fee now £1000, plus £300 viewing package, beginning to get pretty close to the High Street. A much tougher sell up front I would suggest.
Further changes coming to their fees in the New Year, clearly moving to No Sale No Fee model (sound familiar). These are really big changes from the original concept and ones which LPEs are going to have a much tougher time selling.
When did these guys actually launch ?
How much have they lost so far ?
Why do people invest with this track record ?
I just don’t get it….? can anyone help me understand ?
No
There is nobody out there who can explain it to you
Agent 37, the reason their drop off is less than others is the huge reluctance of the vendors to change agents as they have already ‘paid’ for the service they never received, i.e. they paid to sell their home which hasn’t happened. To change agents means they’re guaranteed to have ‘lost’ their money which not only proves they made a BAD DECISION in instructing these cowboys but also that they now have to write off their invested money as a total loss! The public don’t like to admit they have made a poor decision as it makes them look stupid (stupid is as stupid does). Ahh CONmisery!!!
Pretty sure I posted this last time and got no response but we’ll go again, how’s everyone else doing? Going from strength to strength?! It’s a challenging market. The suggestion is their drop off is less than others.
my company increased market share and revenue.
if the client didn’t llike my fee I’d just say “go to PB”
Canada improved profits by more than 16% and still made a loss, UK ave fee x 32850 = £1433 not 1353 to equate to 47.1m However no matter how much you pan them, they haven’t gone away, they have lost as much revenue or less than most of us not only do they still have their kitty but they have instant cash flow with their lower but upfront fees whilst we have to wait months to get ours and yes, we actually have to get ours to exchange, they don’t and I would venture that they don’t always care as for them it’s a numbers game.
They aren’t going away, live with it, next 6 months with little close down debt to cover they will be looking good then look out for the following full year profits.
I don’t like them anymore than you but I won’t bury my head in the sand, they are here to stay and gain market share, they will.
E51….
”They aren’t going away, live with it, next 6 months with little close down debt to cover they will be looking good then look out for the following full year profits.”
Same old tosh, spin, re-cycle, spin, re-cycle.
As long as they keep pumping millions into marketing they’ll be relevant, not as estate agents, merely the 99p style Option of property advertising (although they are getting much more expensive yet no better?).
They can plough their own furrow, some vendors naturally go cheap otherwise the 99p shops wouldn’t be in business.
I’ll stick to proper estate agency where the savvy vendor knows the value of a “real” estate agents versus the fantasy offering of PB & Co.
I received a CV from a current PB LPE who is desperately trying to exit “the farce” that is PB (his words, not mine), we had a chat, I get why he felt LPE status may be the “New Dawn” for him, the reality however has been a nightmare.
PB are irrelevant in the real world of estate agency, we just like to ensure the perspective is there for all to see, amidst the spin & re-cycle
Essjaydee51 – have you even followed this site for the past couple of years?
Stunning performance.
Best share short after Countrywide .
Where is the improvement?
Multi-Millions poured down the Purplebricks marketing drain and I barely see any of their for sale boards?
Years on and the public still aren’t buying into Purplebricks.
Keep pumping the money Purplebricks ……without it you’re not viable.
UK figures:
Revenue -2.7%
Operating profit -38.6%
Instructions -15%
Marketing cost/instruction +7%
Lets see what the stock market makes of that!
I’ve just skim read this briefly whilst eating my Rice Krispies but the word ‘Down’ just kept jumping out at me.
Well done Purple Bricks, maintained markets share, sales growth and profitability.
I am sure we will see the usual suspects on here trying to find holes and talk trash about PB. Has to be a point when we accept.
Fact is we compete against PB daily and its challenging, they have saved the customer 140m in 6months and continue to invest heavily.
I wonder if we will see a change in commentary on here?
Saved the consumer £140m in six months.
Oh dear. Do you also believe in fairies at the bottom of the garden?
Fact is if you find going up against purple bricks challenging you might want to consider a change of career, the problem is when we don’t go up against them, if they have saved the consumer 140M in six months maybe they could tap those consumers for a loan.
What growth ? UK Instructions down 15% from last year .Ground Zero in USA and Oz Not only that admin expenses up and just a small reduction in marketing costs
It also sounds that they have structural problems with the LPEs Exodus of senior staff.
“Customers saved more than £150 million in commission in the First Half” Except that figure doesn’t factor in those who haven’t sold/ let yet were still charged. That is not, and never has been, a saving.
In fact, the 50% or so of the millions of customers who haven’t sold should be marked down on as liabilities, not income, as they are contractual guaranteed to be marketed until sold (i.e. in perpetuity)
Noted…
The interim results, posted this morning, claim that customers “saved more than £150m in commission” in the first half of Purplebricks year.
Not mentioned…
Unspoken results demonstrate that customers “lost many, many valuable months of marketing and ended up netting lower proceeds from their sale” in the first half of Purplebricks’ year.
Dear Tea Leaf
I always thought the point of running a business was to make a profit?
PB can charge as much or as little as they want, the bottom line is
A: Houses sold
B: Satisfied customers
C: Make a profit
The reason they are losing market share is because none of the above has actually happened.
Dear Tea Leaf,
Pre-tax LOSSES for the six months were £3.4m, up from £3.2m for the same period the previous year.
Operating profit of £3.5m for the six months, DOWN 38.6% from the £5.7m it reported in the same period last year.
£47.1m of revenue, DOWN 2.7% from the same period last year – its gross profit was £30m, DOWN from £31.2m, and operating profit was £3.5m, DOWN from £5.7m.
It claimed to have had 32,850 instructions, DOWN 15% from 38,619.
In Canada, its revenue was £17.7m, up from £15.2m; there was an operating LOSS of £0.6m, broadly in line with the £0.7m loss it reported for the same six months a year ago.
Closure costs in Australia were £6-8m, and £4-6m in the US.
These are all ‘facts’ from PB.
Well done purple bricks?
Keep drinking the Koolaid.
Hilarious!
They even managed to post a loss in Canada. UK Instructions down as expected by 15% So this FY looking like less than 70k in the UK a country mile off 100k predicted by Hardmans when pitching to investors
Admin expenses up in UK and very little reduction in marketing costs No new revenue streams announced The arrival of Vic has been disappointing at best
One saving grace still £40m in the Tommy How much of that will be chewed with final overseas closure costs
Peak oil. r.i.p purplepricks