Brief: Purplebricks Group starts strategic review, warns of wider core loss

Purplebricks

17/02/2023 07:46

Feb 17 (Reuters) - Purplebricks Group PLC  PURP.L :
    * PURPLEBRICKS GROUP PLC PURPLEBRICKS GROUP PLC: TRADING
UPDATE
AND LAUNCH OF STRATEGIC REVIEW
    * PURPLEBRICKS GROUP PLC - PROACTIVELY IDENTIFIED £4M OF
FURTHER
ANNUALISED COST SAVINGS
    * PURPLEBRICKS GROUP - ADDITIONAL SAVINGS WILL BE ACHIEVED
BY
STREAMLINING LETTINGS BUSINESS & MORE CONSERVATIVE INVESTMENT IN
RAMP UP OF MORTGAGES BUSINESS
    * PURPLEBRICKS GROUP PLC - IMPACT OF LOWER INSTRUCTION
LEVELS
DURING Q3 FY23 HAS RESULTED IN BOARD REVISING ITS EXPECTATIONS
FOR FULL YEAR PERFORMANCE
    * PURPLEBRICKS GROUP PLC - EXPECTS TO DELIVER REVENUE FOR
FY23 OF
BETWEEN £60 MILLION AND £65 MILLION
    * PURPLEBRICKS GROUP PLC - EXPECTS TO DELIVER FY23  ADJUSTED
EBITDA LOSS OF BETWEEN £15 MILLION AND £20 MILLION
    * PURPLEBRICKS GROUP PLC - DECIDED TO CONDUCT A STRATEGIC
REVIEW
OF GROUP'S BUSINESS
    * PURPLEBRICKS GROUP PLC - APPOINTED ZEUS AS ITS FINANCIAL
ADVISER
TO ASSIST WITH STRATEGIC REVIEW.
    * PURPLEBRICKS GROUP PLC - REMAIN CONFIDENT IN RETURNING TO
POSITIVE CASH GENERATION IN EARLY FY24
    * PURPLEBRICKS GROUP -  IMPLEMENTATION OF TURNAROUND PLAN
TAKEN
PLACE BUT IT HAS INVOLVED MORE DISRUPTION TO SALES FIELD THAN
ORIGINALLY ENVISAGED
    * PURPLEBRICKS GROUP PLC - IMPLEMENTATION PROCESS HAS
RESULTED IN
ABOUT £1.2M OF ONE-OFF EXCEPTIONAL COSTS BEING INCURRED IN H2
FY23 TO DATE
    * PURPLEBRICKS GROUP PLC - INSTRUCTION NUMBERS ACHIEVED IN
Q3 FY23
WERE LOWER THAN BOARD'S PREVIOUS EXPECTATIONS
    * PURPLEBRICKS GROUP PLC - IMPLEMENTED A FEE INCREASE ON 1
FEBRUARY WHICH WILL INCREASE ARPI GOING FORWARD

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