BuyMyPlace, the DIY property site in Australia, reported $5.5 million AUD ($3.8 million U.S.) in full-year losses for the financial year ending June 30, 2018.
Full-year revenue increased 36 percent to $2.9 million AUD ($1.9 million U.S.), but losses increased 44 percent — which the company attributed to legal and consulting fees to develop growth strategies, in addition to a $227,000 AUD impairment charge against the goodwill of MyPlace Conveyancing.
At the end of the 2018 financial year, the company had $268,000 AUD in the bank. However, its current liabilities exceed assets by nearly $680,000 AUD.
BuyMyPlace is reporting its results late due to an internal review by the new owner, KM Custodians, to determine its ability to continue as a going concern.
According to the final report, its ability to continue operating is dependent on the company’s ability to secure new funds “by raising capital from equity markets and managing its current cash flow.”
KM Custodians is the investment arm of turnaround firm KordaMentha. It acquired BuyMyPlace late last year in exchange for forgiveness of debts it owed to KM Custodians, its largest shareholder at the time.
In December, BuyMyPlace chief executive Colin Keating resigned; by February so did several other board directors.
ByMyPlace’s shares on the ASX have been suspended since December, during which time the company disposed of its interests in its finance business and several other entities. “As a result of the disposal,” the company said, “the net asset position of the company significantly improved, providing a stronger foundation for further growth in continuing operations and achieving the company’s growth strategy.”
The company added that over the full year, it had “continued to increase its market share and revenue.”
BuyMyPlace is also looking to expand its conveyancing business through partnerships with parties “connected to the real estate industry and include online property transaction platforms, traditional real estate agencies, mortgage brokers and financiers.”
“Looking forward,” the company said, “the group is planning further expansion in strategic partnerships, as well as enhanced product offerings.
“The company will continue to build out its capability to provide customers with the means to complete major property transactions (buy, sell, rent, build, renovate) and conveniently access high-quality products and services.”
Its shares remain suspended on the ASX. The company said it will provide updates in due course.