Purplebricks Revenue Soars But Losses Widen

The hybrid estate agent, which has pumped money into an advertising campaign, has grown its share of the online market

Online estate agent Purplebricks presented a mixed bag in its first set of results since listing on London's junior Aim market in December.

Revenues at the company climbed to £7.2m from £800,000 in the six months to October 31.

But pre-tax losses widened to £6.4m, from £2.5m in the same period last year, as it spent heavily on marketing and advertising in a bid to grow its market share.



The investment appeared to pay off, with Purplebricks reporting a 275pc rise in instructions since the reporting period closed.

"We have grown the company to become a national business in a short period of time, and have grown it very quickly," said Michael Bruce, chief executive.

"We've invested heavily in marketing and advertising, and built a technology platform that is unique.

"With the strength of trading and the continued successful execution of the strategic plan the board remains confident in meeting its expectations for the financial year."

Purplebricks claims to be the fourth largest estate agent in the country, based on the number of fee-paying customers. Clients are encouraged to pay upfront on instruction for their services.

It also claims to be a "hybrid" estate agent - it is based online, with no high-street presence, but has "local property experts" who can interact with customers and provide valuations and local knowledge.

The company had a 60pc share of the online estate agent market in October, compared to 43pc in April.

It raised £22.8m in its listing in December.

Separately, Savills has named Sky's Nick Ferguson as its new chairman, replacing Peter Smith when he steps down in May.

Mr Ferguson co-founded private equity group Schroder Ventures, and was chairman of private equity group SVG Capital for seven years, before joining the broadcaster as its chairman in 2012.

Sourced- Telegraph