Purplebricks Group PLC (AIM:PURP), a tech-led estate agency business, has released its interim results for the 2023 financial year amid news activist investor Lechram is gunning for the ousting of chairman Paul Pinder.
Revenues fell 16% year-on-year (YoY) to £34.5mln with gross margins of 47% compared to 63.4% in 2022 reflecting the increase in fixed-cost base following the company's transition to an employed model in September 2021.
Underlying losses (EBITDA) came to £8.4mln reflecting lower revenue as a result of the investments made in the period, though total loss from operations of £14.6mln was a 28% YoY improvement.
The company's cash position reduced by nearly a half to £31mln.
Read more: Purplebricks activist Lecram calls for chair to go after years of 'poor business decisions'
In August's annual results, Purplebricks boss Helena Marston said the company's performance had been "not good enough" but that the company was "assessing additional revenue streams" including a new mortgage proposition.
In today’s earnings statement, 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. We have taken further steps to reduce our cost base, from an initial £13mln of annualised savings to £17m, while also investing in our strategic priorities and increasing the efficiency of our field."
"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," she added.
Full-year revenue guidance of between £67.5mln and £72.5mln and underlying losses of £8.8mln were reiterated. The company said it expects to become cash-flow positive in the early 2024 financial year.