(Alliance News) - Purplebricks Group PLC on Monday said adjusted earnings are expected to beat consensus for its 2021 financial year, thanks to improved efficiency.
Shares in Purplebricks were up 4.9% at 60.22 pence in London in afternoon trading.
The online estate agent is expecting to post an adjusted earnings before interest, tax, depreciation, and amortisation figure "comfortably ahead" of the market view for financial 2021 of GBP3.5 million.
Purplebricks defines adjusted Ebitda as "operating profit, adding back depreciation, amortisation, share based payment charges and exceptional items."
This improvement over consensus was attributed to a continued "focus on operational efficiency".
As lockdown restrictions eased, and with the stamp duty holiday announced by the UK government, Purplebricks is now expecting an 8% rise in instructions for the six months ended October 31, the first half of its financial year, to 35,387 from 32,850 a year before, with a 20% increase for the five months since June.
Cash at October end exceeded GBP75 million, up from GBP66 million July 15.
Chief Executive Vic Darvey said: "Our growth in instructions through the period demonstrates that Purplebricks' proposition has never been more relevant, particularly in the current market, and our strategic progress has helped us to capitalise on the pick-up in market activity. We expect to deliver a pleasing profit performance in the first half, but it is too early to extrapolate this out to the second half of the year given the expected end to the stamp duty holiday and the potential impact of increased Covid-19 restrictions on the housing market. As a result, we are planning cautiously around the outlook for the full year."
Purplebricks will post its interim results on December 15.
By Anna Farley; annafarley@alliancenews.com
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