Online property services company buyMyplace reports $5.5 million loss

The newly appointed directors of buyMyplace.com.au, the online property services company for DIY sales, have reported a $5.5 million loss.

The loss was up on the prior $3.8 million loss with the increase attributed to additional legal and consulting fees to develop growth strategies, costs and interest associated with the debt financing facilities, impairment of goodwill in relation to the acquisition of My Place Conveyancing, and increased employment and share based payments costs.

Its total operating revenue was up 36% to $2.86 million, compared to $2.10 million in the prior corresponding period, primarily driven by DIY listings and revenue from My Place Conveyancing.

Its total costs increased 41%. 

At the end of 2018, the company held cash reserves of $268,000.

The Group’s current liabilities exceed its total assets by $672,357.

The ability of the company to continue as a going concern, according to the audit report, is principally dependent upon the ability of the company to secure funds by raising capital from equity markets and managing cash flow in line with available funds.

"These conditions indicate a material uncertainty that may cast significant doubt about the ability of the company to continue as a going concern," it noted.

Subsequent to year end, the operations of BuyMyHome Pty Ltd and its associated subsidiaries were disposed of and in addition, the company has procured a $200,000 loan with Misquitta Capital.

The company is also communicating with interested parties for external investment into the remaining operating subsidiary, which will further reduce the need for funding.

In November 2017, buyMyplace completed a $1 million working capital facility with KM Custodians Pty Ltd which provided it the capital to progress its growth strategy developed through strategic partnerships, the rollout of additional offerings, and technology and platform improvements to enhance user experience.

The facility was replaced by a $3 million debt financing facility from KM Custodians Pty Ltd which was used to repay the original $1 million facility, and fund working capital requirements.

The new facility had $1.5 million still available.

It issued 583,755 fully paid ordinary shares to the vendors of My Place Conveyancing Pty Ltd, pursuant to the share sale deed entered into to acquire all of the issued share capital in My Place Conveyancing Pty Ltd from the vendors.

The shares held by its 756 shareholders have been suspended for trading on the ASX since September last year.

The shareholders include Butterss Resources Pty Ltd, held by former director Pete Butterss; Karlusic Investments Pty Ltd; Paul Becca; Laurence Holyoake and Peter Ronec.

buyMyplace.com.au has recently lost its chief executive officer Colin Keating, who was appointed in November 2017.