OnTheMarket expected to go into profit in 2021 – but must grow at astonishing rate between now and then

OnTheMarket is projected to break even around two years from now.

Investor website Simply Wall St says that according to the three industry analysts covering OTM, the consensus is that break-even is near.

They expect the company to post a final loss next year, before turning a profit of £12m in 2021.

However, says the commentary, working backwards from estimates, it turns out that the analysts expect OTM to grow 91% year on year.

Simply Wall St says that this is rather optimistic, and slower growth would mean profitability later on.

But is such growth possible? It is not out of the ordinary when a company is in a period of investment.

A plus for OTM is that it has no debt on its balance sheet “which is rare for a loss-making growth company”. These usually have a high level of debt relative to equity.

However, OTM currently operates purely off its shareholder funding and has no debt obligations, making it a “less risky investment”.

More here, with further analysis that can be clicked through to:

https://simplywall.st/stocks/gb/media/aim-otmp/onthemarket-shares/news/breakeven-on-the-horizon-for-onthemarket-plc-lonotmp/

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20 Comments

  1. GPL

     

    Maybe by 2021 they will have dropped that bl@@dy advert!

     

     

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    1. Bless You

      Why haven’t countrywide joined? They should be using every trick in the book to beat connells and bricks.

      Sprigget should go , while at the same time issuing a public apology to connells for taking them to court.

      After this, they could actually compete with rightmove.

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      1. brokerofexcellence

        I think CWD marketing spend went out the window circa 2016…….

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        1. HIT MAN

          Connells took OTM to court and CWD have major shares in RM and Z.

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          1. whatdoiknow58

            No sorry CWD sold all their shares sometime ago along with anything else that wasn’t nailed down.

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    2. HIT MAN

      RM didn’t get where they are though advertising agents did it for them.

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      1. AJP123

        Surely OTM proves to you this isn’t true? If RM gained all its share from agents then when all those same agents advised OTM there would of been a power shift. 5 years later and OTM is still the poor relative even after millions spent on advertising and over 60% of UK agents using it at some point.

        Being profitable by 2021 is optimistic to say the least with an impending Brexit and a large bulk of clients contracts ending. And to say there is no debt is true, but that £30m from IPO is running out and the market cap hasn’t shifted from £60m, mix in public awareness and dwindling membership numbers it’s a race as to what will run out first.

        Good news is that it’s been ran by a charlatan for over 5 years now and hes made fortunes

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  2. Hillofwad71

    The problem is unlike Bricks whose TV advertising  campaign and sponsorship deals which have resonated  they have failed to attract the attention of the general public. Very few people outside the industry recognise them as a contender with RM and Zoopla.
     
     The general concensus is that OTMP’s campaign has been poor.
     
    The profit can likely to be kicked right on down the road .
     
    They need to land a big fish .A further  campaign  requires money of course-oodles of it .So either a well  heeled investor comes into the fray like Axel Springer at Bricks to give them the necessary or they raise money  in other ways which will lead to dilution of share capital .This is on top of shares being sprinkled at newcomers as sweetners.
     
     
    Many agents don’t seem to have forgiven Springett and are unlikley to associate themselves unless there is regime change.
     
    They are beween a rock and a hard place

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    1. smile please

      “Very few people outside the industry recognise them as a contender with RM and Zoopla”

      I would say very few IN the industry recognise them as contenders.

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      1. Hillofwad71

        True !!!!

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  3. Cyberpunk35

    OTM has lost its way. In an effort to defeat their enemy they have become everything they detested about their enemy. Sell outs to their public share holders. Stuff your principles, stick to your profit? Yep

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  4. NotAdoctor32

    So, if they manage to convince all the freebies to start paying, then convince nobody else to leave then all they need to do is hike the prices and they will be in profit.

    Rightmove MkII.

    It was never about the agents, it was always about the money.  Can’t believe people fell for it!

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  5. GPL

     

    OTM is almost a lost cause. My company will exit OTM early 2020 when the V1 Member Shackles are unlocked …..unless there is a “Moses” style change of direction …..for now “The Promised Portal Land” is nowhere in sight.

     

    Unlike OTM my company stuck to its principles and continued to pay the V1 Monthly Subscription. OTM had an open goal to aim at yet has consistently been wide of the mark.

     

    Member engagement has stalled, marketing is tired …..and the Big TV Ad was weak from the start, lacked impact, and has failed to move the brand forward.

     

    I’m sad to say it all smacks of a group of “Millionaires in Waiting” struggling to crawl over the Golden Pot finishing line.

     

    There is a 5 – 10% chance of OTM turning its tired offering around however it seems incapable of managing that because it seeks to deliver for its biggest shareholders/those with the biggest potential financial rewards, rather than delivering the killer blow for Our Industry.

     

    OTM has only successfully created a 3rd Portal? …..an unnecessary Portal.

     

    As Rightmove is clearly at a Crossroads of its own making, so OTM (who had a blank canvas to work with) is stuck in a never ending twilight zone of failing to deliver.

     

    Step up Ian Springett or step aside – You and your Board are failing to deliver ……there is no point if you can’t be bothered getting your fingers out of your own portals!

     

     

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  6. paulnewboy26

    So. I am a “freebie” who has now been asked to pay via “another” type of offering, as they realised the share issue / monthly payment did not entice me. Regardless of how much per month they want, here is the question.

    Does anyone get any creditable leads from OTM ?

    Answer for us is basically NO. But there is a part of me that actually likes it over Zoopla, which is also delivering zero creditable leads.

    Perhaps it’s a regional thing?

    Perhaps people really do not like the advert, like me?

    Feedback welcome from those who use it, support it….

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    1. fluter

      PNB26, We are an original Gold Member and so tied until 2020 when we will assess the various portal opportunities. regarding leads, we seem to get far more rental leads than sales, approximately 5 to 1. Quality is reasonable but not great. We were previously on Z and that was worse.

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      1. BenNorthEast62

        I feel our leads for lettings are very poor due to the integration with facebook. Prior to that, they were quite good.

        On the sales front, I think the quality (not the amount) is better than RM but not enough to warrant leaving RM.

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  7. Spare Room

    We never joined, even when the freebies were on offer.

    From the beginning i had fears about how and what this was going to do to our industry. The initial meetings stirred so much emotion between agents (some for, some against) that i just couldn’t see how it was going to collectively bring everyone together.

    Having watched the promises disappear 1 by 1 and the voice of agents being theoretically kicked into the long grass has proved this was all about making certain people wealthy from the outset.

    I’m in favour of having a cost effective marketing solution that serves the industry as a whole, but i just don’t think this is it.

    Time will tell if OTM can regain the confidence of its customer, the industry and more importantly the general public.

    I for 1 though am slightly thankful we never got involved.

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  8. Penguin

    Having been stung to the core and shafted sideways by this mob I’m just waiting for them to pack up and fold.

    Snakes and scoundrels out to make a mint for themselves at yet more expense for an already overstretched industry.

    If you catch me on a good day I’ll tell you what I really think.

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  9. Budgie boy

    Not to be trusted .

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  10. HIT MAN

    I think the best way forward would be for everyone to dump Zoopla and OTM and help Rightmove get to the £2500 per branch target they have set and promised the shareholders!

    Report
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