Online estate agent Purplebricks revealed plans to head Down Under as the recently-listed firm posted a fourfold rise in sales over its past year as Britons continue to shun high street agencies. The Neil Woodford-backed firm said its annual revenues rose by 448 per cent to £18.6million as it sold and completed £2.8billion worth of property deals. Losses ballooned from £5.4million to £10.5million for the full year to April 30, reflecting costs associated with its flotation last December, but Purplebricks said it will turn a profit by next year. The company also said it will expand into Australia in 2016, where chief executive Michael Bruce hopes to tap a £3.3billion market. Web boost: Online estate agent Purplebricks revealed plans to head Down Under as the recently-listed firm posted a fourfold rise in sales over its past year as Britons continue to shun high street agencies Purplebricks said it had recruited an Australian management team and planned a maximum investment in the country of £10million over the next two years, funded from existing cash resources. Mr Bruce said: ‘In just our second full year of operation we are leading change in an industry that has long been stagnant and is only now waking up to the opportunities and threats posed by technological advance and changing consumer behaviour. ‘While others are following, we have retained our leading position, with 62 per cent of the non-traditional estate agency market and look to replicate this success in Australia.’ Website visits at the Aim-listed firm rose by 208 per cent to more than 1.23 million per month in the last 12 months. Purplebricks had 205 agents at the end of April, up from 165 before its float. The company said it expected to employ 245 agents by the end of this month. Ian Osburn, analyst at Cantor Fitzgerald, said: ‘We predict sustained rapid growth. Purplebricks has been outgrowing online peers, the company can sustain significant growth for years. ‘International markets offer further opportunities. We think Purplebricks prospects are strong and maintain our buy recommendation.’ Purplebricks shares were up 5 per cent, or 6.8p to 138.0p in late morning trade, having floated at 100p a share at the end of last year which gave it an initial market value of £240.3million. The stock – of which Woodford Investment Management has a 28 per cent holding - has had a volatile six months, hitting a low of 72.5p in January as global stock markets slumped at the start of the year, before rallying to a peak of 180.0p last month. Online moves: Countrywide, the UK’s largest residential estate, this month launched a fixed-fee, pared-back online service, while rival Savills has invested in Yopa, a fixed-fee ‘hybrid’ agency that launched in January. At the time of its float, Purplebricks said it was the market leader in the hybrid and online sector, with a market share of the top six national online competitors in excess of 60 per cent. The group added that its site had approximately 4,300 residential properties for sale, which represented more than twice the number of properties on the next largest online agency. Purplebricks, was founded by Mr Bruce and his brother Kenny in 2014. Instead of the percentage-based fees charged by high street estate agents such as Countrywide and Savills, Purplebricks charges a fixed £798 plus VAT, or £1,158 plus VAT in Greater London, levied whether or not a home is sold. Responding to the increased competition, earlier this month, Countrywide, the UK’s largest residential estate launched a fixed-fee, pared-back online service. Countrywide’s move followed an investment by rival Savills in Yopa — a fixed-fee ‘hybrid’ agency that launched in January. Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
UK online estate agent, Purplebricks, is planning to expand into Australia to tap into a £3.3bn market. The company has put together an Australian management team and is looking to invest £10m in the country over the next two years. “Purple bricks are very popular with young people who want something different from traditional brick houses,” said David Jones, chief executive of Purplebricks. The firm expects to have 245 agents by month end, up from 165 before its float. Chief executive, Michael Bruce, said Purplebricks currently has 62% of the non-traditional estate agency market and wants to replicate that success in Australia.