Digital property agent Purplebricks has disclosed substantial losses during the year it was acquired by Strike, according to newly released figures.
Fresh accounts lodged nine months beyond the Companies House deadline reveal the company’s pre-tax losses ballooned from £19.4m to £37.8m in the year ending 31 March 2024, as reported by City AM.
During the same timeframe, revenue climbed from £13.2m to £31.1m.
Purplebricks’ financial statements for its latest year are scheduled for submission to Companies House before December concludes.
Regarding the delayed filing, the firm explained: “Completion of the 2024 accounts has taken slightly longer than usual due to the additional work involved following the change of ownership.”
Strike acquired Purplebricks in June 2023 for the nominal sum of £1.
Purplebricks blames interest rate rises
In a board-endorsed statement, the enterprise declared: “During the year, the business was subject to market uncertainties resulting from the three further interest rate rises and significant changes in policy imposed by legislative authorities which impacted performance in the year.
“The housing market slowed and mortgage lenders amended product offerings and further increased mortgage interest rates.
“In late 2023, following the transfers and the creation of a consolidated business, a review of the business structure and cost base was initiated.
“Post year end, the business and management have continued to refine the business model and review the cost base to best serve the products offered to customers.”
Regarding its current trading, Purplebricks stated: “The business continues to operate as an online estate agent, providing customers a fairer way to sell their house.
“Since the year end the group has continued to evolve its product offering to ensure customers save money, benefit from our expert estate agents and can choose a package and payment option to suit them.”
Panorama investigation
These accounts follow recent criticism of Purplebricks after an undercover investigation by BBC Panorama alleged ‘dubious sales tactics.’
The programme, aired in July, accused the estate agency of ‘trying to attract sellers by overvaluing properties.’
Panorama conducted an investigation into the online estate agency Purplebricks following concerns about its sales methods.
In a statement released at the time, Purplebricks said: “We are extremely disappointed and concerned by the way Panorama has pursued this investigation.
“We provided detailed evidence to challenge many of the claims put to us – including full call recordings and correspondence – but they appear to have been ignored.”
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Speaking on City AM’s Boardroom Uncovered show last year, then-CEO Sam Mitchell labelled the rental market as “completely broken” and a “disaster for first-time buyers” unless they can rely on the bank of mum and dad.
Mitchell stepped down from his role in November 2024.
