Purplebricks Group PLC (LON:PURP) has warned it expects its revenues for the year to April 2020 will be “below expectations” as the coronavirus pandemic hit the housing market.
The estate agent said it had moved its entire business model online, including video valuations and virtual viewings, however, despite this, the company had seen a “weakening in vendor and purchaser activity” since the UK government imposed restrictions on movement as part of its containment measures.
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As a result of the market uncertainty, Purplebricks has implemented a number of “immediate and significant measures” to preserve cash during the period, including reducing supplier costs and overheads as well as suspending all TV and radio advertising and cutting down on online ads.
The company said the measures meant there will be a “materially reduced level of cash burn if revenue is significantly reduced over a sustained period of time”.
Looking ahead, the firm said it is “too early” to predict its performance for the 2021 financial year, and will need to wait until the impact of the pandemic on the housing market became clearer.
Despite the gloomy outlook, shares in Purplebricks were still up 2.2% to 38.6p in early trading on Monday, although they are still down 70% in the year to date.