Purplebricks have posted their interim results from the first half of the financial year in London, with the report stating ‘market conditions and some operational issues’ are the reason behind significant operating losses in Australia.
Shares in the company fell almost 13 per cent after the results were posted. They included an Australian operating loss of $10.2 million in the first half, including costs associated with restructuring the business. To date, the company has invested close to $50 million in its Australian business.
Revenue growth in Australia was reported at 40 per cent, despite tough market conditions according to the report.
“While reporting strong growth in Australia, the underlying performance was held back by market conditions and some operational issues, which we have taken steps to correct with changes to the team, customer proposition and business model,” said a memo to shareholders.
The company posted a profit in the UK, but on a global scale is operating at a loss which has doubled since a year ago.
The company is maintaining its statement from earlier in the year that it will be profitable within the next 12 months.
Purplebricks is reportedly hoping a recent change to the Australian business model will be the key to them turning the business around in 2019.