AGM Trading Update

RNS Number : 8810J

Purplebricks Group PLC

15 September 2016

 

15 September 2016

Purplebricks Group plc

AGM Trading update

Strong momentum continues, UK to be profitable this year

Purplebricks Group plc ('Purplebricks' or 'the Company'), the leading hybrid estate agency providing a new way to sell, buy or let property, issues the following trading update for the 19 week period to 14 September 2016 in advance of its AGM to be held at 10.00am today.

Trading since the start of the new financial year on 1 May has been very encouraging, with little discernible impact following the EU referendum on the 23 June. For the period, UK instructions are up 121% year-on-year and have continued to grow month-on-month culminating in 3,156 instructions in August. Furthermore our market share versus online peers has strengthened to 65% at the start of September.

The recruitment of Local Property Experts (LPEs) is ahead of plan and on-course to deliver on our target of achieving 360 LPEs by April 2017. As at 14 September 2016 we have 300 LPEs recruited, an increase of 46% since 30 April 2016 when we last reported.  We continue to roll out our share option scheme to our LPEs.     

Superior customer service is at the heart of our proposition and we continue to be the most positively reviewed estate agent in the industry with a rating of excellent and 9.3 out of 10.0 from over 7,800 independent Trustpilot reviews.

The launch of Purplebricks Australia in late August is progressing very well and has been executed on time and within budget. Early indications from the first two weeks are very encouraging, with the number of valuations substantially ahead of the UK business at the same point in its development.

The Company is well funded with over £28m of cash and is on course to meet the board's full year expectations, with the UK business moving into profitability this financial year.

The Company will report its Interim results in early December.

Commenting on the update, Michael Bruce, Chief Executive, said:

"We continue to win market share through a combination of our compelling customer proposition, increased brand awareness and the ongoing recruitment of high quality Local Property Experts, which is driving our local service across the country. We are confident that the same model and the quality of the local management team will prove successful in Australia.

The way consumers transact residential property is changing and this is being led by the Purplebricks model. Our technology, marketing expertise and strong culture, coupled with our low fixed cost business model makes us best placed to win in this market. We are confident in the future and delivering value for all of our stakeholders." 

Enquiries:

Purplebricks	[phone]
Michael Bruce, Neil Cartwright
Zeus Capital	[phone]
Nicholas How, Ben Robertson, Mike Cuthbert
Peel Hunt	[phone]
Dan Webster, Adrian Trimmings and George Sellar
Instinctif Partners	[phone]
David Simonson, Mark Reed, George Yeomans

Notes to Editors

Purplebricks is the leading next generation estate agency in the UK, combining highly experienced and professional Local Property Experts and an innovative use of technology to help make the process of selling, buying or letting so much more convenient, transparent and cost effective. Purplebricks is transforming the way people perceive estate agents and estate agency.

Unlike traditional agents, where customers only pay upon the sale of the property, which effectively means that those that do sell pay more in order to cover the costs of those that do not sell, Purplebricks believes it is more equitable that everyone should pay, charging a flat fee at instruction. This helps to avoid the industry issue of timewasters and those that are merely 'testing the water' and underpins the low, flat fee model.

Customers can chose to pay at instruction or defer, at no extra cost, to the earlier of ten months from the date of instruction or the date of sale. If a customer wishes to defer payment, they are required to use Purplebricks' conveyancing services for the sale.

Purplebricks charges £798 (inc.VAT) for a sale anywhere in the UK other than in London where there is a charge of £1,158 (inc. VAT). There are additional charges if the customer wants Purplebricks to undertake the viewings on their behalf, if they require an energy performance certificate or a Rightmove premium display, amongst other services that are available.

The business model is low cost, flexible and cash generative, without the need for an expensive leased estate. LPEs are self-employed and receive a flat fee per instruction and can earn additional fees from the sale of ancillary services including but not limited to conveyancing, mortgage referrals and insurance.

Purplebricks launched in Australia in August 2016, a £3.3bn market, with an initial focus on Melbourne and Brisbane, before rolling out its offering to Sydney, Perth and Adelaide later this year. The Group intends to invest £10m in the Australian business over the next two years which will be funded from existing cash resources.

Purplebricks listed on the Alternative Investment Market (AIM) in December 2015, raising £25.0m of growth capital before listing costs at 100p per share.

 

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