28 Feb 2022 07:00
28 February 2022
ONTHEMARKET PLC
("OnTheMarket", the "Group" or the "Company")
POST YEAR-END TRADING UPDATE
OnTheMarket plc (AIM: OTMP), the majority agent-owned company which operates the OnTheMarket.com property portal, is pleased to announce an update on trading for the year to 31 January 2022 (FY22).
Strong performance in line with recent update
The Group's operational performance continued to be strong throughout the second half of FY22 and in its trading update on 21 January 2022, OnTheMarket upgraded its expected adjusted operating profit1 for the year to 31 January 2022 to be not less than £2.5m.
Following the end of FY22, the Group is pleased to be able to confirm that full year results were in line with these increased expectations. Accordingly, subject to audit, the Group expects to report for FY22:
· Revenues of approximately £30.8m (FY21: £23.0m); and
· Adjusted operating profit for the year of approximately £2.6m (FY21: £2.4m).
Further operational progress
FY22 saw the successful implementation of a number of commercial partnerships, which provide a greater range of products and services to the Group's advertiser customers and to OnTheMarket.com users. Recent partnerships include those with Brickflow, Autoenhance.ai and a strengthened partnership with Sprift, through which OnTheMarket can provide an exclusive prospecting product, SmartMail, to its advertiser customers.
In addition, in January 2022, an extended agreement with Insurestreet Limited (trading as Canopy) was concluded, alongside a strategic minority equity investment by the Company into Insurestreet Limited of £350k.
Cash position
OnTheMarket remains well capitalised with net cash at 31 January 2022 of £8.4m and no borrowings.
Outlook
With the new website and brand launch in December 2021, and an increasing range of commercial partnerships successfully established, the transformation of OnTheMarket to create a tech-enabled property business across the broader property ecosystem is accelerating.
The new website, and initiatives such as 'Only With Us', continue to attract serious property-seekers and connect them with our advertisers.
The strategic steps the Group has taken, alongside the support of our agent customers and shareholders, provide the Group with the confidence that it has a platform from which to drive long-term profitable growth.
Jason Tebb, Chief Executive Officer, commented:
"We are delighted to have achieved a year of further financial and operational progress. But there is much more to come. We have received great feedback from our customers regarding our new strategy and enhanced suite of product and service offerings. We look forward to continuing to deliver greater value to both advertisers and consumers during the year ahead."
Footnotes:
1) Adjusted operating profit is defined as operating profit before share-based payments (including charges relating to shares issued for agent recruitment), specific professional fees and non-recurring items. This is an alternative performance measure and should not be considered an alternative to IFRS measures, such as revenue or operating profit.
ENDS
For further information, please contact:
OnTheMarket 0207 353 4200
Jason Tebb, Chief Executive Officer
Clive Beattie, Chief Financial Officer
Tulchan Communications 0207 353 4200
Giles Kernick
Oliver Norgate
Zeus Capital (Nominated Adviser/Joint Broker) 0203 829 5000
Jamie Peel, Martin Green, James Hornigold
(Corporate Finance)
Benjamin Robertson (Broking)
Shore Capital (Joint Broker) 0207 408 4090
Daniel Bush, John More (Corporate Finance)
Fiona Conroy (Corporate Broking)
Background on OnTheMarket:
OnTheMarket plc, the majority agent-owned company which operates the OnTheMarket.com property portal, is a leading UK residential property portal provider.
Its objective is to create value for shareholders and property advertiser customers by delivering an agent-backed, technology enabled portal - offering a first-class service to agents and new homes developers at sustainably fair prices and becoming the go-to portal for serious property-seekers.
OnTheMarket provides a unique opportunity for agents to participate in the equity value of their own portal. Agent backing and support enable OnTheMarket to display 'Only With Us' properties which are either exclusive properties advertised at OnTheMarket.com by customers who do not list their properties with either Rightmove or Zoopla, or properties listed 24 hours or more before agents release these properties to Rightmove or Zoopla.