The majority agent-owned company OnTheMarket (ONMP ) informed investors today that its operational performance has continued to be strong throughout 2H 21/22 and that as a result, revenues for the full year to 31 January 2022 are expected to be slightly ahead of market consensus.
The London-listed firm, which operates the OnTheMarket.com property portal, outlined in October 2021 that it had expected to achieve around breakeven adjusted operating profit for the period.
In October 2021, OnTheMarket reported “a strong financial performance, operational growth and real progress” in its half-year results for the six month period to 31 July 2021.
At the time, and as a result of its positive performance, the Board anticipated FY22 revenues to be slightly ahead of expectations and adjusted operating profit to be 'substantially' ahead of expectations.
Whilst H1 20/21 was impacted by the effective suspension of the property market as a result of the coronavirus pandemic, both of these metrics also represented growth on H2 20/21, 'a period of intense activity as consumers sought to move as lockdown ended,’ it explained.
Today, the company said that it expects adjusted operating profit to be positive in 2H and that profit will be at least £2.5m for FY 21/22 ‘when combined with a higher level of development investment in the new website and brand launch that will be capitalised rather than expensed.’
The Directors said they believe its outlook remains unchanged from October 2021 and that it 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,’ the company told investors.
OnTheMarket said it will provide an update in a post year-end trading update in late February.
Commenting on this morning’s trading update, Chief Executive Officer of OnTheMarket, Jason Tebb said: “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.”
He added that, “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.”
Last month, OnTheMarket launched a new website and brand with a range of new products, services and functions as part of its efforts to build “a differentiated business.” Tebb said the launch was “a major moment”, and that it represented “a new chapter for the business.”
The Company explained that its new website had been developed with the aim of providing ‘the most relevant experience for consumers aimed at increasing engagement with serious and active property-seekers and bringing innovative ways to generate leads for agents.’
The new website features additional functions including a ‘Help Me Choose’ feature to provide tailor-made property listings, ‘Wish List’ keyword search, as well as a ‘Travel Time’ search.
OnTheMarket, which believes the launch marked its continued evolution into a property technology company that provides services for agents, housebuilders and consumers, said the new brand would be rolled out across a new TV advertising campaign from Boxing Day.
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