Purplebricks withdraws from the US to focus on UK and Canada
Abraham Darwyne
Company News - 2 min read
09:32, 3rd July 2019


image source: Sky News

Purplebricks (PURP) FOLLOW, the online estate agency announced its official withdrawal from the US market on Wednesday after a strategic review, the company said in its final results.  

Purplebricks reported that revenues were up 55% to £136.5 million and that operating loss widened to £52.3 million, compared to £27.9 million in the previous year.

In February, it announced that poor performance in its US and Australian businesses forced management to dampen its revenue guidance from £165-175 million to the £130-140 million range.

It announced its withdrawal from the Australian business earlier in the year in May.

However it reported that its UK was performing well, with UK revenues up 21% to £90.1 million and UK adjusted EBITDA up 65% to £10.2 million.

Purplebricks’ Canadian business which it acquired in July 2018, continues to meet expectations, contributing £23.7 million of revenues, it said.

Shares in Purplebricks were trading 2% higher at 95p a share following the results

Vic Darvey, Group Chief Executive Officer, commented: “With a base of clear brand leadership in both the UK and Canada and a differentiated, technology-led proposition driving business model advantages, we now have a clear plan to unlock the next wave of growth and extend our market leadership.”
 
He added: “We have taken the difficult decisions to exit our businesses in both Australia and the US as it is very important that we now focus our resources on the UK and Canada, where we have a strong established presence and where there are significant opportunities to grow market share and deliver profitable growth for shareholders.”

The company said it expects both of its exits are expected to be completed by the end of 2019.

Follow News & Updates from Purplebricks here: FOLLOW

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Comments
info
Login or register to post comments

Recent Articles
Watchlist