Purplebricks exits US property market as losses deepen

Online estate agent Purplebricks’ new boss trashed his predecessor’s global expansion strategy on Wednesday as he pulled out of the US to focus on UK growth.

Vic Darvey outlined the plans as he said efforts to grow across the Atlantic and in Australia, which Purplebricks is also abandoning, almost doubled losses to £54.9 million in the year to April.

Darvey, who replaced ousted chief executive and co-founder Michael Bruce in May, said “clearly we have made mistakes”.

He said: “Our product and tech teams have been stretched to the limit working on overseas expansion.” Britain will be the focus now, although the market is “challenging” amid political uncertainty.

The firm will leave the US, which it only entered in 2017, by the end of the year, at a cost of up to £6 million.

Purplebricks, in which troubled fund manager Neil Woodford’s firm has a 18% stake, saw revenues rise 55% to £136.5 million. UK sales were up 21%.

Shares rose 2p to 95p, having floated at 100p in December 2015.