Sir Charles Dunstone’s investment vehicle Freston Ventures has committed to continue financial support for Purplebricks until at least October 2027, despite the online estate agency reporting pre-tax losses of £32.7 million for the 12 months to March 2025.
The long-awaited annual accounts for Purplebricks Property show net current liabilities increased to £55.8 million at the end of March 2025, up from £22.8 million the previous year. The business also owes its parent company Strike Limited approximately £48.1 million.
Shareholder funding requirement
Accounts for Strike Limited, also published this week, reveal the group has continued to incur losses and remains dependent on shareholder funding to meet its financial obligations as they fall due. An additional £32.65 million has been received since the year end to support working capital requirements.
The reliance on external funding comes as broader market conditions remain challenging, with property transaction volumes under pressure.
Management restructuring
Despite the financial performance, Freston Ventures has provided a written letter of support committing to provide financial backing for the ‘foreseeable future’ and to not call in loans for 12 months following October 2026.
The accounts cite several factors supporting the continued investment, including home moving demand in the market and the return of Purplebricks founders Michael Bruce and Kenny Bruce, alongside chief financial officer Neil Cartwright.
The document states: “This management team previously founded and scaled Purplebricks from a start-up into one of the UK’s most recognised estate agency brands, achieving a public listing on AIM in 2015 and, at its peak, a market valuation in excess of £1 billion.”
Financial position
As at 31 March 2025, the company recorded net liabilities of £56.2 million, compared to £23.5 million the previous year. The business operates within a competitive estate agency sector that has seen traditional agencies pursuing expansion strategies in recent months.
Strike Limited directors have prepared detailed forecasts for the group covering the period to October 2027, with the business continuing to rely on shareholder support to fund operations.
