(Alliance News) - OnTheMarket PLC on Tuesday raised its expectations for the rest of the year following a "strong" and "positive" first half.
Shares in the Aldershot, England-based operator of online property search portal OnTheMarket.com were 4.5% higher in London on Tuesday morning at 96.10 pence each.
In the six months to July 31, pretax profit plunged to GBP45,000 from GBP676,000, as administrative expenses rose to GBP12.8 million from GBP9.4 million.
Adjusted operating profit surged to GBP2.1 million from GBP800,000, however.
Adjusted profit is operating profit before share based payments, specific professional fees and non-recurring items, the company explained. In the first half, OnTheMarket recorded GBP1.2 million in share-based agent recruitment charges compared to GBP605,000 the year before. It also repaid GBP449,000 in government grants in the period after recording a GBP325,000 gain the year before.
Revenue increased 46% to GBP14.9 million from GBP10.2 billion. Average revenue per property advertiser improved 52% to GBP188 from GBP124.
Traffic visits to its site increased 36% to 159 million from 117 million.
"I am delighted to report that the first half of our year has seen a strong financial performance, operational growth and real progress with our strategic objective of building a differentiated, tech-enabled property business," Chief Executive Jason Tebb said.
He continued: "The first stage of our transition is complete and we see this as the start of a mutually beneficial journey. We will continue to innovate and are actively exploring further new customer product and service offerings. As part of the next stage of our development we are undertaking a review of our branding and proposition to clearly articulate our USPs to serious property seekers and at the same time provide more tools for our agents and housebuilders, continuing to add value to customers and consumers alike."
Average monthly advertisers listed were down 5% at the end of the first half, at 12,972, with OnTheMarket pinning this on agents on long-term free of charge contracts being asked to migrate to paying contracts.
In the first half, agency branches listing increased 5% and new homes developments listed rose by 6%.
Looking ahead, the firm expects revenue to be slightly ahead of expectations following the "positive" first half, and said adjusted operating profit will be "substantially ahead" of expectations for the full year to January 31, 2022.
In financial 2021, OnTheMarket recorded adjusted operating profit of GBP2.4 million with revenue of GBP23.0 million.
"With a growing and loyal customer base, strong engagement with serious and active property-seekers, progress against our strategic roadmap and a balance sheet and cash generation to support the group's current strategy, the board looks to the future with confidence," Tebb added.
By Paul McGowan; paulmcgowan@alliancenews.com
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