Online real estate broker Purplebricks boosts sales in the UK by 20%

Online real estate broker Purplebricks boosts sales in the UK by 20%

Online real estate agency Purplebricks has posted a 20% increase over the previous year in the UK over the past six months.

Before the interim result published on December 13, the Internet-based real estate office published a short trade update for the six months ending October 31.

The Group said UK revenue growth was driven by "double-digit" growth in the number of orders received as well as better revenue from each customer.

Sales: Purplebricks has grown in the last six months in the United Kingdom, a 20 percent increase over the previous year

Sales: Purplebricks has grown in the last six months in the United Kingdom, a 20 percent increase over the previous year

Sales: Purplebricks has grown in the last six months in the United Kingdom, a 20 percent increase over the previous year

The exact number of homes sold through the online agency across the UK was not described during the period. The group generally does not publish a breakdown of the exact sales figures.

Money has asked the company to provide the exact numbers Utt has not yet received.

In a radio interview in October 2016, CEO Michael Bruce said he sold 88 percent of the homes he had to bring to market within ten months. However, the investment bank Jefferies considers this to be wrong after conducting its own study earlier this year.

In a February announcement to investors, Jefferies noted that in November 2016, Purplebricks sold just 51.6 percent of the properties on its property within ten months.

Between IPOs in December 2015 and August last year, Purplebricks shares rose 450 percent. Last year, the share rose by 170 percent.

However, some analysts fear that the group has preferred their overseas expansion plans before it is fully rooted in the UK.

Michael Bruce, Managing Director of Purplebricks

Michael Bruce, Managing Director of Purplebricks

Michael Bruce, Managing Director of Purplebricks

At the beginning of the year, PurpleBricks' shares were around 414 pence. Today, the company's share price has risen 2.68 percent or 4.85 pence to 186.15 pence.

Renowned fund manager Neil Woodford's investment firm was behind Purplebricks for the first time in August 2014.

By the time Purplebricks was traded on the London Stock Exchange in 2015, Woodford's group said Purplebricks already had a "significantly higher valuation than our initial investment".

In June of this year, Woodford increased its stake in Purplebricks from 26 percent to 27 percent. The fund now holds over 81 million shares in Purplebricks.

In October, Purplebricks investment analyst Harry Raikes released a commentary on Purplebrick's performance on the Woodford Group website.

Mr. Raikes said in a section, "Purplebricks shares were very weak this year after trading a little softer in the UK and facing challenges in their young Australian business."

Fluctuations: A graph that shows the share price of Purplebricks since 2016

Fluctuations: A graph that shows the share price of Purplebricks since 2016

Fluctuations: A graph that shows the share price of Purplebricks since 2016

In its latest trade update, Purplebricks said it could "continue to gain market share in a difficult market environment in the UK."

The group added, "The online / hybrid sector continues to grow, reaching a market share of 74 percent in October. This has grown by 80 percent, despite fiercer competition and the overall category of media spending in the sector. Purplebricks leads the UK market in terms of brand awareness, with a supported reputation of 97 percent and an unconscious reputation of 48 percent.

The international expansion plans continued.created the foundations to realize the considerable market opportunities in the USA.

While pointing to continued US growth, the company said that "sell-side listings are rising and private revenues are rising."

In Australia, the group said it had to deal with a difficult market, but changes in customer offer were well received, leading to a 35 percent increase in new instructions in October compared to a month earlier.

The company expanded to Canada in July with the acquisition of Canadian real estate company DuProprio and its English subsidiary ComFree for nearly £ 30 million.

In October, the company announced plans to move to Germany with the founding of a joint venture with Axel Springer, in which Homeday holds a 25.9 percent stake.

Purplebricks maintained its forecast for full year sales of £ 165m to £ 185m. At the end of October, it had a net cash position of more than £ 100 million.

Michael Bruce, Chief Executive of Purplebrick, said, "The challenging UK real estate market is leading to a clean-up of the industry, with weaknesses in some business models of traditional and online agents.

"Against this backdrop, Purplebricks continues to grow and gain market share. Longer term, with the industry's most recognizable brand, flexible business model, and strong balance, Purplebricks is well positioned to further strengthen its leading position in the UK and repeat overseas success. We are confident about the future of our business. "

Peel Hunt analysts maintained their "buy" recommendations for Purplebrick stock.

The analysts said, "Although Purplebricks operates in some difficult markets, it continues to grow and gain market share.

"Brand awareness is growing, supported by a flexible business model and strong balance sheet, and the group is well positioned to continue growing in the UK and overseas."

Share Data: Chart for the share price of Purplebricks since early 2018

Share Data: Chart for the share price of Purplebricks since early 2018

Share Data: Chart for the share price of Purplebricks since early 2018

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