TIDMPURP
RNS Number : 7150Q
Purplebricks Group PLC
21 February 2019
Purplebricks Group plc
("Purplebricks", the "Company" or the "Group")
Trading Update and Management Changes
Purplebricks Group plc (AIM: PURP), a world leading hybrid real
estate agency, provides an update in relation to current trading
and changes to its non-Board leadership team.
Whilst the UK housing market has continued to be challenging for
the estate agency industry, the Board still expects to report UK
revenue for the current financial year of approximately 15-20%
above the prior year. The Company also expects to maintain its 75%
share of UK online instructions and for Purplebricks to continue to
be the clear market leader in UK hybrid estate agency.
Although the Australian housing market has experienced a number
of headwinds, the Board is encouraged by the new leadership team,
the positive changes made in the model towards the end of 2018 and
the current level and quality of activity. However, the anticipated
amount of recognisable revenue will not be sufficient to meet
expectations for this financial year.
In the US, the Company is making better than expected progress
with conversion from opportunity to listing, listing to sale and
sale to ancillary revenue, receiving positive reviews and feedback
from customers. However, there has been a slower than expected
response to the second US marketing initiative that concluded
towards the end of January. There are some early positive signs
from the third US marketing initiative and a recent change in
business model to payment on completion. The vast majority of
short-term investment will be focused on the Los Angeles and
Florida markets. As a result of this, the Board does not expect the
amount of US revenue to be sufficient to meet its expectations in
this financial year.
The business in Canada has performed well and remains on track
to meet management's expectations. The Board continues to be
encouraged by current and future opportunities in this market.
Management changes
The Company announces that Lee Wainwright, UK CEO, and Eric
Eckardt, US CEO, will shortly be leaving the business.
After two years with Purplebricks, Lee Wainwright will leave the
business for personal reasons. Lee played an important role in
helping Purplebricks become the UK's largest estate agent. His
responsibilities will be taken on in the interim by Vic Darvey,
Purplebricks' Group Chief Operating Officer, who joined the
business in January 2019 from MoneySuperMarket.com. Vic has
extensive experience of leading strong tech-focused,
customer-centric businesses and will play a key role in the future
direction and next stage of growth for Purplebricks.
Eric Eckardt will also be leaving the Company after two years.
Michael Bruce, Group CEO and co-founder who was instrumental in the
growth of the Purplebricks business in the UK and has proven
experience in bringing together marketing, technology and customer
centric estate agency operations will take on day-to-day management
of the US business with immediate effect.
The Board wishes to thank Lee and Eric for their
contribution.
Guidance
As reported at the interim results, the Company updated its
revenue guidance for the 2018/19 financial year to GBP165-175
million under IAS 18. Given the reasons noted above, the Board
believes revenue for the current financial year will now be in the
GBP130-140 million range under IFRS 15.
The Group expects that the UK will achieve an adjusted EBITDA
margin in double-digits for the year. In Australia and the US, the
Board will continue to keep tight management of capital
allocation.
Cash balances at the end of January were GBP71.0 million.
Michael Bruce, CEO and co-founder, said: "Although there are
macro and industry headwinds across markets we are well placed to
capitalise on the significant opportunity for growth that exists in
each country, albeit not entirely as we would have wanted before
our year end. The UK is leading the way with continued profitable
growth and a strategy to deliver greater success. I am also excited
to be taking the reins of the US business. The team in Australia
are building on the changes they implemented late last year and
Canada is delivering on plan and expectations. The Board remains
confident of the long-term growth potential of the business and the
opportunity to deliver substantial value for shareholders."
Other information
This announcement contains inside information within the meaning
of the Market Abuse Regulation.
--- END ---
Enquiries
Purplebricks +44 (0)20 7466 5000
Michael Bruce, CEO
James Davies, CFO
Adam Kay, Head of Investor Relations
Zeus Capital (NOMAD) +44 (0)20 3829 5000
Nicholas How, Benjamin Robertson
Peel Hunt +44 (0)20 7418 8900
Dan Webster, George Sellar
Investec Bank +44 (0)20 7597 5970
Keith Anderson, Carlton Nelson
Buchanan
David Rydell, Jamie Hooper, Catriona Flint +44 (0)20 7466 5000
Forward-looking statements
This announcement includes statements that are, or may be
considered to be, "forward-looking statements". By their nature,
such statements involve risk and uncertainty since they relate to
future events and circumstances. Results may, and often do, differ
materially from forward-looking statements previously made. Any
forward-looking statements in this announcement reflect
management's view with respect to future events as at the date of
this announcement. Except as required by law or by the AIM Rules of
the London Stock Exchange, the Company undertakes no obligation to
publicly revise any forward-looking statements in this announcement
following any change in its expectations to reflect subsequent
events or circumstances following the date of this
announcement.
About Purplebricks
Purplebricks is a world leading hybrid real estate agency. Based
in the UK, it also operates in Australia, the US and Canada, and
will shortly be invested in Homeday.de in Germany. Purplebricks
combines highly experienced and professional Local Property Experts
(US: Local Real Estate Experts) and innovative technology to help
make the process of selling, buying or letting more convenient,
transparent and cost effective. Purplebricks shares are traded on
the London Stock Exchange AIM market.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCQFLBLKLFXBBL
(END) Dow Jones Newswires
February 21, 2019 02:02 ET (07:02 GMT)
Purplebricks (LSE:PURP)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Purplebricks (LSE:PURP)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024