OnTheMarket has agreed the renewal of contracts with several key agencies reaffirming their commitment to advertising their properties with the portal, in addition to signing a new listing agreement with Lomond Group.
On the Group’s admission to AIM in February 2018, many of its agency customers at that time committed to listing agreements with a five-year minimum term, running initially to February 2023. OnTheMarket has confirmed this morning that several of the highest profile agency brands have signed new agreements including, Arun Estates, Chancellors, Chestertons, Douglas & Gordon, Glentree Estates, Knight Frank, Savills, Spicerhaart, Webbers, Carter Jonas, among others.
In July 2022, Foxtons signed a listing agreement with OnTheMarket.
These high-profile extensions come at a significant time for OnTheMarket, as the portal continues to evolve and expand its offering by bringing new agents to join its incumbent members.
OnTheMarket also announced its unaudited interim results this morning for the six months ended 31 July 2022.
The results showed continued progress in operational and financial performance, with strong growth in revenue and ARPA, up 14% and 9% respectively.
After planned strategic investments in marketing and the team, the Group continues to be profitable with adjusted operating profit of £1.3m, while the results also revealed a strong balance sheet, with H1 22/23 cash generated from operating activities of £3.1m. Period-end net cash increased to £8.7m, with no borrowings (31 January 2022: £8.4m).
The portal’s focus on serious property seekers continued, with valuation leads up 69% versus H1 21/22 while traffic and average monthly leads per advertiser increased relative to the preceding 6 months to 31 January 2022, up 11% and 6% respectively.
Meanwhile, there was a 6.1% conversion ratio of site visits to leads, while average monthly advertisers listed were up 1% period on period.
Jason Tebb, CEO of OnTheMarket, commented: “We have a clear strategy in place to build a tech-enabled property business, a “one stop shop” for agents and we are delivering on this. Our continued operational and strategic progress is evidenced by our good set of results and the belief shown in us by agent customers who have committed their long-term futures to OnTheMarket.”
He continued: “Our momentum is building. OnTheMarket is better placed today than ever to be the partner of choice for our agents to navigate all market conditions. We continue to offer exceptional value, as well as an increasing range of products and services, that help our customers win instructions, sell or let properties, make efficiency and cost savings and earn incremental revenues. The value and breadth of our products and services are key to retaining and growing our share of customer spend.”
Glanty, relaunched as OnTheMarket Software, launched new products including TecCRM, the first majority agent owned CRM delivering an end-to-end customer relationship management solution further evidencing The Group’s ongoing commitment to expanding its software solutions as part of its strategic pillar for growth.
Today’s results also show a 73% increase in agency spend on additional products reflecting increased value provided and demonstrating progress against the Group’s growth strategy to add value through products, services and partnerships.
The focus of the portal continues to be on providing its customers with increasing value for money across the products and services provided to support their business activities in all market conditions to generate valuable leads, support them in winning new instructions and interact with buyers, sellers, tenants and landlords.
Tebb concluded: “Underpinning our confidence in the future is the continued support of our agent customers, evidenced by our contract renewals and our role as the ‘agents’ portal’, and our consumers, who have responded very positively to the changes we have made. We have a strong pipeline of customer and consumer-led new products and services which will also further differentiate our proposition.”
The Board remains confident that the Group will meet full year expectations
Highlights
|
Period ended 31 July |
2022 |
2021 |
Change |
|
Group revenue |
£17.0m |
£14.9m |
14% |
|
Adjusted operating profit1 |
£1.3m |
£2.1m |
(38)% |
|
Operating profit |
£0.1m |
£0.0m |
n/a |
|
Profit after tax |
£0.4m |
£0.5m |
(20)% |
|
Period-end net cash |
£8.7m |
£8.42m |
3.6% |
|
ARPA3 |
£205 |
£188 |
9% |
|
|
|
|
|
|
Average monthly advertisers4 listed |
13,118 |
12,972 |
1% |
|
Period-end advertisers |
12,876 |
13,7325 |
(6)% |
|
Period-end agency branches |
10,460 |
11,4515 |
(9)% |
|
Period-end new homes developments |
2,416 |
2,2815 |
6% |
|
Traffic/visits6 |
138m |
1247m |
11% |
|
Average monthly leads per advertiser |
107 |
1017 |
6% |
It’s great to see the continued growth of OTM even if it’s not a stratospheric rise in website visitors and income.
It is time for agents who have dismissed OTM in the past to look at it again, with more support it will go from strength to strength and eventually become a viable alternative to RM.
I think the only thing holding it back is public awareness, us agents need to rectify this by staggering our portal marketing and using OTM’s New & Exclusive feature for at least 24 if not 48/72 hours for new instructions.
Let’s stop feeding the beast of RM and start looking after our own long term interests. If we don’t what’s to stop RM eventually start marketing properties themselves and cutting us out altogether?
OTM isn’t just a portal too, it also offers lots of free add ons and discounted other services, you need to check those out too as it could mean a ‘free’ subscription once they are taken into account.
Maybe you think that dropping RM is too much of a gamble for you now, and you might be right but why not swap Zoopla for OTM and help them to grow into the viable alternative we all want to keep RM under control.
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Are they still excluding non “high street” agents”?
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We leave in Feb 2023 after supporting from the first funding round many many moons ago.
We wish them well though, as we have many shares in the company, so hopefully if a major success, we shall reap the rewards of dividends in the future.
PS – (Crash3903) They need to allow all types of agencies now. If they are to be considered a place to search for property, the public need to know there are no exclusions ie ALL agencies are welcome to display their properties for the good of serious buyers visiting their site.
Oh come on before you all start hitting the thumbs down button, this is not just the FansOnly Site for OTM…
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The calls keep coming in from applicants ‘there is nothing on Rightmove’ and I think the more this happens, the more they will look for alternatives and revert back to registering their details, which they have been doing a lot more in the past few weeks.
Rightmove doesn’t make any sense considering the ridiculous amount they charge. I’m not suggesting that OTM is the best way forward either. I think the value of an agent is their knowledge/data, maybe it’s about time agents stop paying to give that data away?
You go to a valuation and it is now a game, you try to come up with the figure that the vendor already has in their mind. Without all the data, the client would need Estate Agents. That’s the way to stop the race to the bottom. You don’t need a best price guide to carry out a valuation, you need experience and experience is worth £££.
I wonder what the agents will all say when the Rightmove price hikes come in and yet you are paying more to list less properties. Portals are a choice. They are not a replacement for experience.
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