Purplebricks posts sharp revenue growth as boss remains confident despite 'challenging' housing market

Sebastian McCarthy
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Purplebricks chief executive Michael Bruce said that challenges still hang over the UK's housing market (Source: Getty)

The boss of online estate agent Purplebricks sought to ease City nerves this morning, after saying that the firm was confident of its future despite wider troubles within the UK’s housing market.

Having posted a 20 per cent rise in year-on-year revenue growth in the six months to the end of October, chief executive Michael Bruce said that the company was “confident about the future for our business”.

Revenues hit £39.9m in the six-month period, with the online broker boosted by a rise in new instructions.

The Aim-listed firm, which operates in Britain, Australia, the US and Continental Europe, said it remains on course to meet its full-year revenue guidance of between £165m and £185m.

However, striking a cautious tone that resonates fears throughout the sector, Bruce added that the “challenging UK housing market is driving a shakeout in the industry”.

Shares climbed more than four per cent on the news, edging back slightly from a drop of nearly 10 per cent yesterday that suggested City scepticism about today’s trading update.

Purplebricks, which has challenged a number of the traditional bricks-and-mortar estate agents since it was founded six years ago, has spent the last 12 months ramping up its overseas expansion by entering the US market.