(Alliance News) - Purplebricks Group PLC on Thursday said its loss widened in the first half of financial year 2023, as the company aims for positive cash generation in financial 2024.
The online estate agent reported a pretax loss for the six months that ended October 31 of GBP14.6 million, widening from GBP12.9 million a year ago.
Purplebricks said first-half revenue was down 16% to GBP34.5 million from GBP41.3 million a year ago. The reduction in revenue was in line with expectations, it said, and reflects the impact of movements in deferred and accrued income.
The company reiterated its financial 2023 revenue guidance to be between GBP67.5 million and GBP72.5 million.
Cash and cash equivalents were down 46% at GBP31.3 million from GBP58.3 million. The company said it has "a clear plan to deliver a turnaround in performance", and has moved to the second phase of its cost-cutting plan, increasing cost savings to GBP17 million from GBP13 million.
Purplebricks said further cost reductions will enable the company to invest in its strategic priorities and drive new revenue streams in order to return to a positive cashflow.
Chief Executive Officer Helena Marston said: "The turnaround plan is working and is being delivered at pace, with the financial benefits starting to come through in the second half of the year.
"Our plan to diversify revenue streams and build a more scalable, balanced business, with less reliance on instructions is gaining momentum. We launched our new mortgage proposition last month, five months ahead of plan, and are rapidly scaling our conveyancing services to the buyer segment of our customer base," Marston said.
Purplebricks shares were down 2.8%, trading at 9.70p per share on Thursday afternoon in London.
By Harvey Dorset, Alliance News reporter
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