Purplebricks Group plc

For the half year, instructions held steady at 21,205, total fee income was £34.4 million (broadly flat / down 1% year over year), reported revenue fell 16% year over year, gross margin was 47% versus 63% in the prior year, and adjusted EBITDA was a loss of £8.4 million versus a loss of £0.8 million in half one FY22. Operating loss was £11.7 million, cash closed at £31.3 million, and cash outflow was £11.9 million compared with £15.7 million in the previous half. Management said FY23 full-year outturn remains in line with previous guidance, implying consistent revenue performance into half two and much stronger EBITDA than half one, with half-two EBITDA breakeven targeted.

Helena Marston said the business is making progress across her plan to cut costs, stabilize cash, grow instructions, diversify revenue, and raise standards. She emphasized the strength of the brand, citing over 90% awareness, a 6 percentage point increase in consideration after the new campaign, and leadership metrics such as 80% sales exchanged and sale-agreed speed of 33 days. Her tone was confident and execution-focused, framing the first half as a reset while saying the company is now operating in areas where it can achieve profitable, targeted, sustainable growth.

Dominique Highfield described the half-year as expected but not flattering, and said the results do not yet reflect the operational and cultural changes already made. He pointed to £34.4 million of total fee income, a 47% gross margin versus 63% a year ago, operating costs of £24.6 million, adjusted EBITDA loss of £8.4 million, and cash of £31.3 million, down £11.9 million from opening. He also said cash burn is slowing, the second half should see a significantly changed cash trajectory, and full-year outturn remains in line with prior guidance with a much stronger EBITDA performance in half two.

There was no real analyst Q&A in the transcript; management mainly used the final section to reiterate guidance and strategic priorities. The main issue addressed was cash burn, with Dominique saying it had been reduced from £15.7 million in the prior half to £11.9 million and that further cost actions and trading initiatives should improve cash generation in half two and FY24. They also addressed margin pressure, explaining that the 47% gross margin reflected the move to an employed model and was viewed as an investment rather than a structural problem.