Purplebricks on track for FY even as first-half losses widen

8th Dec 2022 07:52

(Sharecast News) - Online estate agency Purplebricks reported a widening of its first-half losses on Thursday but said it was on track to meet full-year expectations as its turnaround plan was being delivered "at pace".

In the six months to the end of October, operating losses widened to £11.7m from 11.1m in the same period a year earlier, with revenue down 16% to £34.5m.

Instructions were steady during the period, at 21,205, while average revenue per instruction dipped 1% to £1,624. Total fee income was also down 1%, at £34.4m.

Purplebricks reiterated guidance for FY23 revenue of between £67.5m and £72.5m and said EBITDA was expected to be in line with market consensus for a loss of £8.8m.

Chief executive Helena Marston said: "The turnaround plan is working and is being delivered at pace, with the financial benefits starting to come through in the second half of the year.

"We have taken further steps to reduce our cost base, from an initial £13m of annualised savings to £17m, while also investing in our strategic priorities and increasing the efficiency of our field.

"We are ever mindful of the current economic environment. Our relevant, low-cost proposition, effectively communicated via our new marketing campaign, supports our customers and is especially attractive in these economically challenging times.

"I am confident that the progress we are making and the initiatives we are implementing to drive better performance in the field, together with the additional cost actions to ensure we are a leaner, more efficient organisation, underpin our full year expectations including a return to positive cash generation in early FY24."