Brokers said the results were "impressive" as the Group continues its global expansion.
Companies: Purplebricks Group Plc
Purplebricks (LON: PURP) continues to go from strength to strength as the Group reports impressive growth across its UK, Australia and US operations.
Group Revenues grew 150% in H1 18 while full-year Revenue guidance for its UK business has been upgraded 5% to £84m after reporting UK Revenue growth of 118% to £47m. The UK business also swung from a Loss Before Tax of £0.3 to a Profit Before Tax of £3.2m. Average income per transaction also grew 14%.
In its Australian business, which it launched in August 2016, Revenue swelled to £6.8m from £0.4m with the Group's "percentage market share in Australia higher than the UK after the first anniversary".
Whilst still being very early days in the US, having launched there just three months ago, the stateside expansion went "to plan and ahead of time" while "initial indications from the first few weeks of trading are encouraging".
Understandably chuffed with the results, Group CEO Michael Bruce commented:
"We have had a great first half, with strong trading, significant strategic progress and substantial operational upgrades. The UK business continues its rapid top-line growth, which is driving a strong increase in profits and margin expansion...
Our overseas expansion is progressing well with Australia on track, and the launch into the US in September ahead of schedule."
The Group's cash balance also continues to grow, more than doubling to £64m at period-end despite the increased investment in marketing, expansion throughout Australia and its launch in the US.
PURP shares jumped 3% immediately after the markets opened this morning but dropped to be down 4% on yesterday's closing price at the time of writing.
The stock has been a star performer on London's junior market in 2017, making the cut on our "8 of the best performing AIM-listed stocks of 2017" list.
Corporate broker Zeus Capital put out a note on PURP this morning, saying the results were "impressive":
"We increase our UK revenue forecast to £84m, assume overheads are slightly above twice 1H and a £3.5m increase in 2H media spend to £11.3m. Overall 2H18E will be a period of investment to gain further market share.
With more UK LPEs, higher revenue/transaction and more marketing spend we have increased our FY19E revenue and gross profit estimates by 25% to reflect increased scale and increased investment. "
Consensus forecasts the Group to turn its first Net Profit in FY19 from Revenues of c. £169m. This would represent Revenue growth of over 260% between FY17 and FY 19.
