PurpleBricks Reports Strong Trading with Instructions Ahead of Expectation – Property Industry Eye
Purplebricks claims to have started well until 2021, supported by a buoyant real estate market.
PurpleBricks said the market recovered in 2021, supported by the government’s stamp duty holiday on real estate purchases.
Total instructions increased 12% to 60,238 from 53,680 a year ago as second half instructions exceeded market expectations.
The company says it has claimed a total of £ 1million under the government’s Coronavirus Job Retention Scheme initiative, having laid off a number of employees dealing with customers. But because of the firm solid discussions in the second half of the year and the strength of its balance sheet, the board has decided to reimburse all leave received.
Overall, the company expects to publish adjusted EBITDA for the full year in line with current market expectations. This reflects the increase in instructions in the second half of the year and the containment of operating costs which more than offset the additional £ 1m in paid leave funds.
PurpleBricks says its balance sheet remains strong with cash at April 30, 2021 of £ 74.0million, down slightly from £ 75.8million at the end of October 2020.
Vic Darvey, CEO, said: “We had a strong performance across the company with instructions up 12%. I am happy to see the housing market continuing to recover as foreclosures ease and buyers are helped by the stamp duty holiday.
“We have made good progress in executing our strategic initiatives, including advancing the review of our pricing strategy despite the pandemic. We look forward to providing more details on these new initiatives in our annual results in July.
“I am proud of the Board’s decision to reimburse all leave received and of the strong performance last year. As foreclosure restrictions continue to ease across the UK, we remain confident in our continued strong trading performance into the new fiscal year. “
Purplebricks will publish its annual results for the fiscal year ended April 30, 2021 on Tuesday July 6, 2021.