(Reuters) – UK online estate agent Purplebricks Group Plc forecast a return to growth in 2023 on Monday, after it posted a half-year loss hurt by charges related to “process issues” in its lettings business and a change in its employee operating model.
Britain’s biggest online-only estate agency had flagged a potential financial hit of 2 million pounds to 9 million pounds ($2.7 million-$12.1 million) last month, following an issue in communications with tenants about deposit generations and delayed its interim results as the matter was probed.
Loss from total operations for the six months ended Oct. 31 was 20.2 million pounds, compared to a profit of 6.8 million pounds a year earlier.
The estate agent said the half-yearly loss included a provision of 3.6 million pounds relating to potential claims arising from the issues in its lettings business and a charge of 7.3 million pounds linked to deferred tax assets.
The interim results were also impacted by higher costs related to investments as the company shifted to a new pricing system and a redesigned employee operating model.
The firm said the trend of higher home house prices due to significant demand-supply imbalance in the housing market would continue in the second-half period and that would impact margins and instructions, which fell 38% in the first half.
($1 = 0.7453 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shailesh Kuber and Rashmi Aich)
