Purplebricks' share price has shot up 19 per cent this morning after the company announced a total revenue growth of 159 per cent.
The estate agents reported a UK gross profit of £10.2m for the six months ending 31 October, up from £4.1m during the same period last year. UK revenues grew from £7.2m to £18.3m.
Purplebricks said today that its launch down under was better than any of its regional launches in the UK. Gross profit in Australia was £0.2m, and revenue was £0.4m.
This cat certainly seems happy about that:
Why it's interesting
Purplebricks first said in June that it would be going on an Australian venture. It launched in Brisbane and Melbourne, and has spent £10m on the move. The firm, which is backed by Neil Woodford, has also revealed plans to start operations in Victoria, New South Wales, Sydney and Perth. The results are some of the first signs of its success in the region.
What Purplebricks said
Michael Bruce, chief executive, said: "Our strong results are testament to the seismic shift that is underway in the estate agency market.
"Although we recognise that the UK market backdrop is tough, we continue to have a confident outlook for the future."
What analysts said
Anthony Codling, analyst at Jefferies, said Purplebricks had a "strong" conversion rate of homes sold subject to contact, but that the company should be reporting how many homes they actually sell.
"The first half results demonstrate that the group continues to grow and its growth is currently outpacing the headwinds which are challenging the overall secondhand market," Codling said. "The group needs to maintain its current listings rate and improve profitability to hit our full year estimates."
AJ Bell investment director Russ Mould said: “Online estate agent Purplebricks led the Aim board in early trading after celebrating a maiden profit on its UK business in the six months to the end of October. The group is growing market share with the number of properties sold in the first half similar to the total number sold during the whole of the previous year.
"Purplebricks has also successfully exported its business model to Australia with the initial performance better than any of the regional launches in the UK."