(Alliance News) - OnTheMarket PLC on Monday said measures taken during the year will result in earnings for its current financial year exceeding previous expectations.
The UK property search portal said it now expects to report revenue of at least GBP22.5 million for its financial year ending January 31 and adjusted operating profit of at least GBP1.5 million. This marks an improvement on financial 2020 revenue of GBP18.8 million and an adjusted operating loss of GBP9.2 million.
This forecast comes after OnTheMarket in October announced expectations to achieve a broadly breakeven adjusted operating profit for the year.
"These expected results reflect the measures taken during the year to support agents through customer discounts, whilst reducing costs and conserving cash, particularly through a reduction in marketing expenditure," the company said.
Looking ahead, it said it expects marketing expenditure in December and January to be higher than in October and November, with the increase expected to result in a slight reduction in its cash balance.
As at November-end, the company had net cash of GBP10.9 million and excluding deferred creditor payments of GBP400,000, no borrowings.
OnTheMarket noted that while it is not able to provide financial guidance beyond its current financial year, its "strong" cash position will allow it to increase investment in new products and services in financial 2021, positioning it to take advantage of available growth opportunities.
The stock was trading 6.1% higher at 130.00 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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