OnTheMarket plc’s (AIM: OTMP) AGM statement reiterates the record engagement metrics, strong operational progress and improving financial results for the year to 31 January 2020.
Christopher Bell, Non-Executive Chairman, stated “Our financial year to 31 January 2020 was a year of strong operational performance with financial momentum building throughout the second half.”
Importantly for investors, the progress made to 31 January 2020 has continued into the current fiscal period with Christopher adding “Despite the UK lockdown as a result of COVID-19, it is pleasing to see operational progress continue. Throughout June, the portal generated more than 1.8 million leads – an average of 134 per advertiser - an increase of 6.3% from our 126 leads per advertiser during January 2020 with total advertisers, as at 30 June 2020, of almost 14,000.”
A strong performance indeed given the levels of disruption across the housing market and the curtailment of discretionary marketing spend by the Company following the onset of the COVID-19 crisis.
Christopher emphasised that “Throughout the COVID-19 pandemic we have focussed on careful management of cash. At the end of June, our net cash balance stood at £9.4 million (an increase of £0.6m compared to the end of May)” with no borrowing, excluding the £2.3 million of deferred creditor payments.
Commenting on the market opportunity for OTMP, Christopher said “pent-up consumer demand as the market reopened, buoyed further by the Chancellor’s stamp duty holiday, agents are seeing strong levels of activity. The COVID-19 crisis has been a catalyst for many agents to review their portal choices and examine the value delivered. We believe there is significant potential for market share gains and we will look to capitalise on this opportunity through our strong portal offering, our approach of agent alignment through ownership in OnTheMarket and our commitment to sustainably low listing fees.”
Shares in OTMP have traded extremely strongly since the peak of the COVID-19 crisis which saw the shares trade as low as 30p, to close yesterday at 87p.
Outlook
With regard to FY21, Christopher pointed out “We look forward to the year ahead with confidence” with “almost 600 branches contracted under the Company's most recent listing offers” and “the number of agent branches listing exclusively with the portal has risen to 1,619 – a rise of 42% year-on-year.”
Being majority agent owned, the interests of OTMP and those of its customers are one and the same and Christopher closed his statement by highlighting “It is particularly pleasing to see the portal delivering real value to its estate agent and new homes customers, with record enquiries as millions of engaged consumers visit the website each week”
*The aggregate of estate and lettings agent branches and new homes developments listed at OnTheMarket.com.