Purplebricks, the online estate agency, has recently announced that it will be cutting its lettings division in order to focus on its core business of selling homes. This move comes as the company continues to struggle financially, with its share price falling by more than 70% since its peak in 2018.
The company has been facing a number of challenges in recent years, including a lack of profits and a series of high-profile departures from its senior management team. It has also been hit by a number of regulatory issues, including a ban on upfront fees for lettings services in England and Wales.
In response to these difficulties, Purplebricks has decided to focus on its core business of selling homes. This means that it will no longer offer lettings services in England and Wales, and will instead focus on its core markets in Australia and the US. It is hoped that this move will help the company to become more profitable and to focus on its core strengths.
The decision to cut its lettings division is likely to have a significant impact on the company’s bottom line. It is estimated that the company will lose around £20 million in revenue from the move, and this could have a significant impact on its profitability.
It remains to be seen whether this move will be enough to turn around the fortunes of Purplebricks. The company is still facing a number of challenges, and it is unclear whether this move will be enough to help it become profitable again.
Regardless of the outcome, it is clear that Purplebricks is facing an uphill battle. The company is hoping that by focusing on its core business, it can become more profitable and return to growth. Only time will tell if this move will be enough to turn around the fortunes of the company.