Shares of Purplebricks Group PLC (LON: PURP) surged 13.8% today after the company announced that it expects half-year profits to beat analysts’ full-year expectations driven by a surge in customer numbers.
The online estate agency reported that new instructions grew 8% to 35,387 in the six months ended on October 31st having started slow in May but boosted by 20% growth in the following five months.
Purplebricks expects its pre-tax earnings to exceed analysts’ full-year consensus estimates of £3.5 million. The company had £75 million in cash at the end of October, a significant increase to the £31 million it had when its fiscal year ended in April.
Vic Darvey, Purplebricks’ CEO, said: “Our growth in instructions through the period demonstrates that Purplebricks’ proposition has never been more relevant, particularly in the current market, and our strategic progress has helped us to capitalise on the pick-up in market activity.”
Darvey expressed caution about the company’s full-year results given that the government’s stamp duty holiday is ending in March and the impact of the second wave of coronavirus infections and lockdowns.
Purplebricks share price
Purplebricks shares surged 13.8% today to trade at 86.1p having rallied from Monday’s closing price of 75.6p.
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