Purplebricks plans Aussie launch

Purplebricks will soon be saying g’day to the Australian housing market as the online estate agent ramped up expansion plans today.

The agent, which marries an online platform with local property experts to charge a fraction of traditional agents’ fees, wants a bite of a market Down Under worth an estimated £3.3 billion.

It has already recruited a management team to oversee the move.

Purplebricks floated on AIM in December and has high-profile shareholders including star fund manager Neil Woodford, former Capita boss Paul Pindar and Wonga founder Errol Damelin.

It believes the Australian market, where the average customer pays £5900, is similar to conditions in the UK.

The firm plans to spend up to £10 million on the overseas push.

Results showed a fivefold increase in sales to £18.6 million in the year to April 30, although losses doubled to £10.5 million as Purplebricks splashed out on a UK-wide launch. The firm still has £30.5 million in net cash.

Chief executive Michael Bruce said: “We are leading change in an industry that has long been stagnant and is only now waking up to the opportunities and threats posed by technological advance.”