Purplebricks cuts forecasts despite leap in revenue amid ‘challenging’ market conditions

Online estate agent Purplebricks has slashed the upper end of its forecasts this morning, as the firm echoed the concerns of its industry rivals over the tough headwinds facing Britain’s property market.

The Aim-listed firm said today that it was projecting full-year revenues of between £165-175m, compared with a previous forecast of £165-185m.

However, in spite of the trimmed outlook, the hybrid estate agent posted a 75 per cent rise in revenue to £70.1m in the six months to the end of October.

The firm completed £5.4bn of UK property transactions during the half-year.

The Neil Woodford-backed company has been looking to ramp up expansion in its UK market in a bid to outperform its online and bricks-and-mortar rivals, many of which have struggled in the wake of a slowing housing market that has been hit by political uncertainty and sluggish wage growth.

The company said: “Our UK business continues to outperform the industry, demonstrating an ability to grow strongly and win share in challenging market conditions. Whilst we expect no short-term improvement to this market dynamic, we are confident that we will continue to outperform and take further UK market share from competitors throughout the second half of our financial year.”

Group chief executive Michael Bruce added: “Our UK business continues to make good progress, with strong sales growth, market share gains and a step-up in both profitability and positive cashflow. It is this strength that will see Purplebricks emerge stronger from the ongoing industry shakeout, which is expected to continue to expose undercapitalised traditional and online competitors.”