OnTheMarket shares were flat at 86.4p in early morning trading on Tuesday after the company announced a revenue climb of 32% to £30.4 million in FY 2022 against £23 million in FY 2021.
Revenue grew on the back of a higher number of paying customers, the migration of customers on discounted rates towards full-tariff contracts, maintained growth in new homes revenues, and Covid-19 customer support discounts that amounted to £2.6 million in 2021.
OnTheMarket reported an adjusted operating profit rise of 13% to £2.7 million compared to £2.4 million, on the back of an 80% climb in marketing investment to £10.6 million against £5.9 million in FY 2021, along with an operating loss of £600,000 from an operating profit of £1.2 million in the last year.
The property portal firm also highlighted a post-tax profit of £100,000 following a profit of £2.7 million in FY 2021.
The group noted a drop in year-end cash of 21% to £8.4 million compared to £10.7 million, in part linked to its investment in Glanty Limited since its acquisition, and full furlough scheme repayment over the term, representing together an estimated £2.6 million in cash payments.
OnTheMarket highlighted mostly flat average advertisers listed at 13,732 against 13,285 year-on-year, alongside an 8% uptick in total advertisers at 31 January 2022 to 13,732 from 12,687.
The company also confirmed a slight boost in traffic of 6% to 283 million visits against 267 million in the previous year.
Guidance FY 2023
OnTheMarket commented that its trading had kicked off to a strong start in FY 2023, with UK residential property markets remaining active and property demand significantly outweighing supply.
The company said its board believed the firm’s recent operational and financial progress, along with its loyal advertiser base, provided a good platform for the implementation of its strategy.
“I am delighted to be reporting a strong set of results which show that our strategy is working. Having listened and engaged with thousands of agents we are more convinced than ever in our strategy of building a differentiated, tech-enabled property business,” said OnTheMarket CEO Jason Tebb.
“With our strong performance and momentum in the business the future remains very exciting for OnTheMarket. We are continuing to deliver increased value to our customers and serious property seekers, with innovative new products and a refreshed brand.”
“I would like to thank the OnTheMarket team for their hard work and commitment to delivering for all of our stakeholders.”
