(Alliance News) - Purplebricks Group PLC on Tuesday reported healthy growth in revenue as part of a strong financial performance for its recent financial year.
The online estate agent posted revenue for the year that ended April 30 of GBP90.9 million, a rise of 13% from the previous year.
Pretax profit for the year was GBP3.6 million, swung from a GBP9.2 million loss the year before. Annual fee income rose 22% to GBP87.1 million, up from GBP71.4 million in 2020.
The robust trading performance was boosted by the stamp duty holiday buoying the market. The tax break, which reduces stamp duty land tax to zero on any residential properties under GBP500,000, was extended to the end of June, from its original March-end deadline. After this, the same applies to any residential property under GBP250,000 until the end of September.
"This great performance has been achieved in the shadow of the Covid-19 pandemic, and it remains a great source of pride that Purplebricks has come through the year stronger than ever," commented Chief Executive Vic Darvey.
In separate news, Purplebricks announced plans to launch a new pricing model in July following successful trials in the north west of England.
The pricing model will include a new money back guarantee and a simplified two-tier proposition.
Looking ahead, Purplebricks said it was too early to quantify the benefit of its new pricing structure to the current financial year. Current expectation is for financial year 2022 earnings before interest, tax, depreciation and amortisation to be flat year-on-year, in line with market expectations, the company stated.
The company believes revenue growth will accelerate towards medium-term targets over the next few years, with annual revenue growth in excess of 20% in the medium-term.
"The market for sales is buoyant at the moment, with fall through rates at their lowest in a long time, but with the very healthy demand currently outstripping new supply volumes. We expect supply and demand to return to more of a balance post summer," the company noted.
Shares in Purplebricks were up 0.5% at 85.61 pence in London on Tuesday morning.
By Will Paige; willpaige@alliancenews.com
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