UK's Purplebricks starts strategic review, forecasts bigger core loss (updated)

Purplebricks

17/02/2023 08:10

(Adds details on revenue, strategic review)
       Feb 17 (Reuters) - Purplebricks Group Plc  PURP.L  said
on Friday it has started a strategic review after saying a
recently implemented turnaround plan disrupted sales more than
expected and would lead to a bigger annual loss than it forecast
earlier.
    "The board recognises that the potential of the group may be
better realised under an alternative ownership structure... and
decided to conduct a strategic review of the group's business
with the aim of delivering maximum value for shareholders," the
company said in a statement.
    Britain's biggest online-only estate agency added it was not
in talks with any potential offeror and had not received
possible offers.
    Purplebricks said the implementation of its turnaround plan
announced in December disrupted sales more than expected,
resulting in about 1.2 million pounds ($1.4 million) of one-off
costs being incurred in the second half of the 2023 fiscal year
to date.
    The company now expects a bigger adjusted core loss of
between 15 million pounds and 20 million pounds for the year
ending April 30, compared with the earlier outlook range of a
loss between 8.8 million and 11.3 million pounds.
    The group also cut its annual revenue forecast to between 60
million pounds and 65 million pounds from the previous range of
67.5 million-72.5 million pounds, hurt by lower instruction
numbers in the third quarter.
($1 = 0.8378 pounds)
 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Dhanya Ann Thoppil and Janane Venkatraman)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692;))