Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Real estate agency Purplebricks swung to a first-half profit, in a sign that it's recovering from a recent rough patch that saw it beat a retreat from North America and Australia.
The company also forecast annual adjusted earnings above current market expectations.
Net profit for the six months through October amounted to £6.8 million, compared to losses of £14.1 million year-on-year, and included a gain on the sale of its Canadian business.
Revenue fell 6% to £44.2 million, though gross profit fell just 1% to £29.6 million.
Adjusted earnings before interest, tax, depreciation and amortisation more than doubled to £8.4 million amid margin improvement.
Purplebricks had cash at 31 October of £75.8 million. It did not declare an interim dividend.
The company said its business had performed strongly in the period since a market shutdown ended, with buoyant trading supported by a strong market recovery.
Adjusted EBITDA for the full year was expected to exceed the upper end of the current consensus range, it added.
'Purplebricks has delivered a strong performance in the period with instructions up 8% and total fee income growth of 6%, despite the UK housing market being disrupted through the height of Covid-19,' chief executive Vic Darvey said.
'We are now emerging from the pandemic in a very strong competitive position.'