The AGM is today. Purplebricks’ maiden (quoted) FY16 results were reported on 16th June, ahead of our expectations: sales by 4%; P&L £1.2m better. Purplebricks is rapidly closing on third largest UK agent. Gross margins were 56.9% (our estimate: 55%). £27.3m cash had been estimated: the outcome was £30.5m. The main development for Purplebricks recently is its launch in Australia, expanding its ultimate potential by 75-100%. The Australian opportunity is that large. The cost is an estimated £11m loss in years 1 and 2, investing for the Austalian launch – similar to the UK launch model. Estimates reflect transactions in the UK residential market being impacted by the outcome of the June Referendum.
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
FY16 sales +448%: FY17 a second whole new market
- Published:
15 Sep 2016 -
Author:
Mike Foster -
Pages:
20
The AGM is today. Purplebricks’ maiden (quoted) FY16 results were reported on 16th June, ahead of our expectations: sales by 4%; P&L £1.2m better. Purplebricks is rapidly closing on third largest UK agent. Gross margins were 56.9% (our estimate: 55%). £27.3m cash had been estimated: the outcome was £30.5m. The main development for Purplebricks recently is its launch in Australia, expanding its ultimate potential by 75-100%. The Australian opportunity is that large. The cost is an estimated £11m loss in years 1 and 2, investing for the Austalian launch – similar to the UK launch model. Estimates reflect transactions in the UK residential market being impacted by the outcome of the June Referendum.