Strike, formerly Housesimple, remains in talks to potentially make an offer for online rival Purplebricks despite the company reporting a sharp decline in revenue.
The online estate agency has released its financial statement for the 12 months to March 2022 revealing losses in its account increased to £72,495,160, up from £54,229,520 a year earlier.
The company also reveals that headcount at the business increased from 154 employees in 2021 to 367 in 2022, while director remuneration rose from £417,195 to £445,735.
Since this period, Strike has gone through a series of job cuts, as reported by EYE.
Strike also revealed that it received a £16.75m loan from investors, at a 12% interest rate. As a result, the agency’s forecast for the period to 31 March 2024 “indicates the company can continue to trade within its cash resources for the 12 months following the signing of these financial statements”.
The firm adds, “The directors have a reasonable expectation that the company has adequate resources to continue to trade for the foreseeable future”.
Meanwhile, Strike Financial Services business also posted a loss on its balance sheet, from £433,498 to £1.96m.
Purplebricks sale process ‘ongoing’ as agency given more time to ‘Strike’ a deal
£72m of losses is eye-watering and last week it was reported that market share across online agents had fallen to below 7%.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
How are investors persuaded to keep throwing money at this farcical company? How are directors getting paid at all, let alone hundreds of thousands of pounds, the company is a complete basket case?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Usually, Strike 3 and you are out. How on earth can they consider a bid for PB when their market share is falling and the market isn’t ideal for growth. If they continue with their model, they are doomed.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Staggering isn’t it! They are both doomed. I mean the interest alone on the recent borrowing is £2 million a year. This without all the other debts.I know us mere High Street Agents are individually turning over much smaller figures but we make a profit after all costs and wages. How on this earth can investors not see these business models are completely flawed and failing rapidly. 12% might seem a good rate but only if you get paid, and eventually get your original investment back. Just unbelievable stupidity.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This is just horrific, £72m losses. It’s just not sustainable, even more in a challenging market. If you work for Strike you really need to ponder on how the future looks.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Its a crazy world that I simply cant fathom. PB are failing and struggling reporting £25m of losses, an almost worthless business and desperate to sell up. In fact a decade of losses. Yet Strike, who have folded previously, who make a “54M loss followed by another £72M of loss – think that they can do it better??? But hey, they think they can stay trading another year!
And their blind folded investors keep writing cheques without questioning leadership, worse still, they’re paying an increasing salary for losses!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“The directors have a reasonable expectation that the company has adequate resources to continue to trade for the foreseeable future”, blind leading the ******* blind!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Wonderful madness.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register