Purplebricks Group PLC COVID-19 Update (9570H)
30 Marzo 2020 - 12:00AM
UK Regulatory
TIDMPURP
RNS Number : 9570H
Purplebricks Group PLC
30 March 2020
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Purplebricks Group plc
("Purplebricks", the "Company")
COVID-19 Update
Purplebricks Group plc (AIM:PURP), the UK's leading hybrid
estate agency, provides the following update regarding current
trading and the potential impact of COVID-19 and Government
guidance on the UK housing market.
Trading Environment
In light of the changing environment, the Company's first
priority has been the health and safety of its people and
customers, and Purplebricks has been adapting to this by
capitalising on its strong digital capabilities. This includes
moving the entire business to working from home and adopting a
complete online model encapsulating video valuations, virtual
viewings and connecting customers with potential purchasers via the
Purplebricks online platform. Customers are also still able to list
properties, providing their own photography and property
details.
However, since the Government's restrictions on movement were
implemented, the Company has seen a weakening in vendor and
purchaser activity. Purplebricks also notes the Government's
announcement regarding the housing market on Thursday evening which
it is evaluating and anticipates it will have a further negative
impact on instruction and completion volumes.
Mitigation Measures
Given the market uncertainty, the Company has taken immediate
and significant measures to preserve cash and implement a lean
operating model through this period. Purplebricks has undertaken a
cost base assessment and has instituted a number of cost-saving
measures, including reducing supplier costs and overheads. All TV
and radio advertising has been suspended and online marketing costs
have significantly reduced. The Company also be using the
Government's COVID-19 Job Retention Scheme and are currently
assessing how to implement.
The Company currently retains c.GBP35 million of cash on its
balance sheet and has no debt. Following these stringent cost
cutting measures there will be a materially reduced level of cash
burn if revenue is significantly reduced over a sustained period of
time.
Outlook
The COVID-19 situation continues to evolve and is likely to
remain uncertain for some time. However, given the recent impacts
Purplebricks now expects revenues to be below expectations for the
full year to April 2020. It is too early to predict the impact on
The Company financial performance for the 2021 financial year until
the impact of COVID-19 on the housing market becomes clearer.
Nevertheless, the Company believes its flexible, digitally-led
operating model leaves Purplebricks positioned for long-term
success.
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+44 (0)20 7466
Purplebricks 5000
Vic Darvey, CEO
---------------------------------
James Davies, CFO
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Zeus Capital (NOMAD) daniel.harris@zeuscapital.co.uk
---------------------------------
Nick Cowles, Daniel Harris
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+44 (0) 207 986
Citi 4000
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Stuart Field, Robert Farrington
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+44 (0)20 7418
Peel Hunt 8900
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Dan Webster, George Sellar
---------------------------------
+44 (0)20 7466
Buchanan 5000
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David Rydell, Jamie Hooper, Kim van Beeck
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About Purplebricks
Purplebricks is a leading estate agency business. Based in the
UK, it also operates in Canada and is invested in Homeday.de in
Germany. Purplebricks combines highly experienced and professional
Local Property 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
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