Have you heard the latest news in the property market?
Online estate agency Purplebricks has reported a 20 per cent year-on-year sales increase across its UK operations in the last six months.
The group said its UK revenue boost was driven by 'double-digit' growth in the number of instructions it received, along with better revenue from each customer, despite the increasing house prices UK.
They told "This is Money" that the number of instructions it received in the last six months would be published in its interim results shortly. Between its flotation on the stock market in December 2015 and August 2017, shares in Purplebricks have soared by 450%. There's no doubt, this estate agency is certainly leading the UK housing market in a prosperous direction. Last year, the shares rose 170%, throughout increase property purchase.
Some analysts, however, worry that they are ploughing ahead with overseas expansion plans before being fully rooted in the UK. Some claim "Purplebricks shares have been very weak this year, following some slightly soft trading in the UK and challenges in its young Australian business." The estate agents have defended these comments giving the latest trading update, we continue to "win market share against a challenging market backdrop in the UK." They then went on to add "The online/hybrid sector continues to grow and a market share of 74% was achieved in the month of October 2018. This is despite increased competition and total category media spend in the sector increasing 80%, Purplebricks leads the UK market in brand awareness with aided awareness of 97% and unaided awareness of 48%."
Purplebricks will continue to push ahead with its international expansion plans, its growth in the USA is ongoing, in Australia they have had to contend with a challenging market, and with the expansion into Canada back in July progressing well. In October, they announced they would also move into Germany by creating a joint venture with Axel Springer, which is taking a 25.9% stake in Homeday.
Purplebricks maintained its guidance for full-year revenue of £165million to £185million. It had a net cash position of more than £100million at the end of October. Michael Bruce, Purplebrick's chief executive, said "We are confident about the future for our business." Analysts at Peel Hunt maintained their 'buy' rating on Purplebrick's shares, stating "Despite operating in some challenging markets, Purplebricks continues to grow and win market share...Brand recognition is growing, supported by a flexible business model and strong balance sheet and the group is well placed for further growth in the UK and overseas".
Here at Britannia Bennetts of Malvern, we wish Purplebrick's good luck and success in their property market endeavours internationally.
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Online estate agent Purplebricks reports a 20% rise in UK sales
Ahead of its interim results published on 13 December, the technology-based estate agency has issued a brief trading update for the six months ending 31 October.
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