# Purplebricks Group plc Strong trading, strategic investment, UK guidance upgraded

- Link: https://www.directorstalkinterviews.com/purplebricks-group-plc-strong-trading-strategic-investment-uk-guidance-upgraded/412742016
- Published: 2017-12-13T07:09:50+00:00
- Author: Giles Arbor

**Purplebricks Group plc** (LON:PURP), the hybrid estate agent providing a new way
to buy, sell or let property, announced today its Interim Results for the six months
ended 31 October 2017.

  |

 |

H1 2018

  |

H1 2017

  |  
 |

 |

UK

  |

Aus

  |

USA

  |

Group

  |

UK

  |

Aus

  |

USA

  |

Group

  |  
 |

 |

£m

  |

£m

  |

£m

  |

£m

  |

£m

  |

£m

  |

£m

  |

£m

  |  
 |

Revenue

  |

39.9

  |

6.8

  |

0.1

  |

46.8

  |

18.3

  |

0.4

  |

–

  |

18.7

  |  
 |

Gross Profit

  |

22.5

  |

3.6

  |

0.1

  |

26.2

  |

10.2

  |

0.2

  |

–              

  |

10.4

  |  
 |

Gross Profit Margin

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56.5%

  |

53.3%

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69.6%

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56.0%

  |

55.6%

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49.7%

  |

–

  |

55.5%

  |  
 |

Administrative expenses

  |

(9.3)

  |

(3.0)

  |

(3.8)

  |

(16.2)

  |

(3.8)

  |

(1.7)

  |

–

  |

(5.5)

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 |

Marketing

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(10.1)

  |

(5.7)

  |

(2.5)

  |

(18.3)

  |

(6.6)

  |

(1.0)

  |

–                

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(7.6)

  |  
 |

Operating profit/(loss)

  |

3.2

  |

(5.1)

  |

(6.3)

  |

(8.2)

  |

(0.3)

  |

(2.5)

  |

–                

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(2.8)

  |  
 |

Adjusted EBITDA *

  |

4.7

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(5.1)

  |

(6.3)

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(6.6)

  |

0.3

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(2.5)

  |

–                

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(2.2)

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 |

Net Cash

  |

 |

 |

 |

64.4

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 |

 |

 |

29.1

  |  
 |   |

* Defined by the Group as profit / (loss) before net finance costs, tax, depreciation,
amortisation and share based payment charges

**Financial highlights**

· Group revenue up 150% to £46.8m

· UK revenue up 118% to £39.9m

· UK business adjusted EBITDA increased to £4.7m

· Average UK income per instruction up 14% to £1,138

· Australian revenue increased to £6.8m

· Average income per instruction in Australia $5,282 AUD

**Operational highlights**

· Number of UK Local Property Experts rose 107% to 650 as at 12 December

· Number of Australian Local Property Experts rose 600% to 105 as at 12 December

· UK Online market share increased to 74%

· Percentage market share in Australia higher than UK after first anniversary

· Commenced US expansion ahead of plan, with Los Angeles in September

· Solid progress in terms of local real estate experts (LREEs), currently totalling
40. Valuations booked, instructions secured and completions via our Escrow (conveyancing)
business

· Launches in San Diego, Sacramento and Fresno in January 2018 along with engaging
a further 18 LREEs

· Service rated Excellent with five stars in the UK, Australia and the US by independent
review site Trustpilot

**Outlook**

· UK revenue guidance for the full year upgraded 5% from £80m to £84m reflecting
a strong first half, recent investment in LPEs and infrastructure, to capitalise
on momentum and further increase market share

· On-course to achieve full year revenue guidance of £12m in Australia

> **Commenting on the results, Michael Bruce, Purplebricks Group Plc CEO, said:**“
> We have had a great first half, with strong trading, significant strategic progress
> and substantial operational upgrades. The UK business continues its rapid top 
> line growth, which is driving a strong increase in profits and margin expansion.
> We continue to win UK market share from traditional operators in what is a challenging
> market and consolidate our leading position with competing digital and hybrid 
> offerings.
> As a result of our continued success we have seen the highly customer engaged 
> Post Sales Support team more than double, the Conveyancing Sales team grow by 
> more than 80% and our Purplebricks Concierge team expanded, with a view to them
> covering the whole of the UK. We have also made considerable strategic investments
> in people to support both UK and global growth. Our team in the UK, excluding 
> LPEs, is now 375 strong.
> Our overseas expansion is progressing well with Australia on track, and the launch
> into the US in September ahead of schedule. While it is very early days we are
> greatly encouraged by the initial response from customers and the quality of applicants
> looking to be Local Real Estate Experts. We are pleased with our progress to date,
> confident in our future, and as a result upgrade our UK full year revenue guidance
> by 5% from £80m to £84m.”

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