OnTheMarket (OTM) released its latest trading update this morning informing shareholders that it is performing ahead of expectations and is on-track to beat market expectations for the financial year.
OTM, launched in January 2015 by Agents’ Mutual, a large consortium of estate agents, including big hitters like Savills and Knight Frank, aiming to regain control of the homebuyer audience, continues to challenge what was once described as the ‘duopoly’ of the two big property portals – Rightmove and Zoopla.
Its latest performance suggests that the property search platform is growing increasingly popular with consumers, illustrated by growth in traffic, which is sure to please investors – and many estate agents.
Here is the latest trading update:
Adjusted operating profit ahead of expectations
In the announcement of its interim results on 12 October 2021, OnTheMarket stated that the Group expected to achieve approximately breakeven adjusted operating profit1 for the six months ended 31 January 2022 (“H2 21/22”).
The Group’s operational performance has continued to be strong through H2 21/22 and revenues for the full year ended 31 January 2022 (“FY 21/22”) are now expected to be slightly ahead of market consensus.
The Company’s focus on disciplined operational and cost management has continued. When combined with a higher level of development investment in the new website and brand launch that will be capitalised rather than expensed as incurred in the income statement, the Group now expects adjusted operating profit1 to be positive in H2 21/22 and to be at least £2.5m for the full year FY 21/22.
The Directors believe the outlook for the Group is unchanged to that announced in its interim results on 12 October 2021 and the Board looks to the future with confidence. With the transformation of OnTheMarket to create a tech-enabled property business across the broader property ecosystem underway and accelerating, the Group remains confident that it has a platform from which to drive long-term profitable growth.
OnTheMarket looks forward to providing a further update in a post year-end trading update in late February.
Jason Tebb, chief executive officer of OnTheMarket, commented: “We are pleased to be reporting a strong performance and further operational progress in keeping with our objective of building a tech-enabled property business. We achieved a great deal in 2021, culminating in the launch of our new website and branding which have been well received by agents and serious property seekers. There is a lot more to come and we look forward to delivering this in the year ahead.”