Company Announcements

25 January 2023

ONTHEMARKET PLC

("OnTheMarket", the "Group" or the "Company")

Full year pre-close trading update

OnTheMarket plc, the majority agent-owned company which operates the onthemarket.com property portal, is pleased to announce an unaudited pre-close update on trading for the year to 31 January 2023 (FY23).

FY23 adjusted operating profit expected to be in line with management expectations

The Group has continued to deliver strong growth and expects to report revenues of between £34m and £34.5m (FY22: £30.4m). The Group has continued to see growth in ARPA during the second half of FY23 despite the delayed launch of some of the Group's new technology products and services, and the fact that these were launched into a challenging macroeconomic environment.

New Homes development listings have continued to grow, with this good performance supported by the release of several newly launched New Homes products in H2.

The Group has maintained its operational cost discipline, and expects to report increased operating margins, with adjusted operating profit for the year expected to be between £4m and £4.5m (FY22: £2.7m).

Strong balance sheet maintained

OnTheMarket continues to have a strong balance sheet, with cash at 31 December 2022 of £10.4m and no borrowings.

Strategic progress and outlook

OnTheMarket has continued to make significant progress against its long-term growth strategy.

The introduction of additional data and market intelligence services has helped to strengthen the Company's offering. OnTheMarket has also introduced a number of technology products and services for agent customers, including relaunching Glanty as OnTheMarket Software and introducing TecCRM, an end-to-end customer relationship management solution.

Whilst the current macro-economic and geopolitical backdrop remains uncertain, our customers are looking for value-for-money advertising to generate valuable high-quality leads together with technology solutions that provide the most value and support them in winning new instructions and interacting with buyers, sellers, tenants and landlords. With a continuing commitment to "Listening, innovating, delivering", the planned launch of the "OnTheMarket 2.2" website upgrade in H1 FY24, ever expanding engagement with our customers and a broadening suite of products and services, the Board remains confident in the outlook for the Group.

Jason Tebb, Chief Executive Officer, said:

"We have made significant progress with our strategy of building a tech-enabled property business and are pleased to continue to be delivering strong growth and profitability. We have also been pleased with the progress we have made in renewing contracts with our agent customers.

Whilst market conditions remain challenging, we are well placed with the exceptional value we continue to offer agents and housebuilders alongside our growing range of additional products and services and with more to come in 2023."

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.

2)  Advertisers are either estate and lettings agent branches or new home developments listed at OnTheMarket.com.

3) All financial figures are subject to finalisation and audit.

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

Alec Tidbury

Zeus Capital (Nominated Adviser/Joint Broker)                                0203 823 5000

Jamie Peel, Martin Green, James Hornigold

(Investment Banking)

Benjamin Robertson (Corporate Broking)  

Shore Capital (Joint Broker)                                                                 0207 408 4090

Daniel Bush, John More (Corporate Advisory)

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.