UK Challenger Strike (Purplebricks) Lost $23.6M in 2023

April 17, 2024
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U.K. hybrid agency Strike, which acquired (and subsequently rebranded as) Purplebricks last year, recorded operating losses of $23.5M according to filings submitted to Companies House on 11 April 2024.

Highlights include:

  • Strike/Purplebricks achieved a turnover of £13.2M, a 65% YoY increase
  • Operating losses reached £18.9M ($23.6M)
  • Total losses were steady at £19.7M (£19.8M in 2022)
  • EBITDA losses narrowed by 4%

Regarding the acquisition of Purplebricks, which went through for a nominal fee of £1 last year, Strike said there remains "a compelling opportunity for the business to significantly disrupt the real estate sector."

The biggest win for Strike is its significant boost in turnover amid difficult market conditions in the UK, but the reality is that a rebrand to Purplebricks—which the firm justified in part due to its high (90%) awareness level with the British public—will need to go hand-in-hand with a strong strategy to turn the tide in its favour.

Strike received £26.2M from existing investors by way of loans and also received a letter of support from investors confirming their ongoing support to commit funds:

"...in accordance with a conservative downside scenario in comparison with budget to March 2025 and... not to recall loans during that period.

Cash reserves sit at a meagre £389,456, and creditor liabilities of £21.8M dwarf debtor assets of £5.8M.

April 17, 2024
Harvey is an experienced property journalist and copywriter. He has written about the property industry since 2015, starting at The Property Franchise Group in the UK, before moving to Spain to work for Spotahome. He has blogged for the private rented sector, ghostwritten for UK property experts and written case studies for franchise owners around the UK. Harvey joined Online Marketplaces as a News Editor in 2022.

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