OnTheMarket has this morning published its results for the year ended 31 January 2023 and reports record group revenues and profits with continued strategic progress.
The Group Revenues were up 14% and ARPA up 12%, reflecting growth in paying customers, strong product sales and continued strong growth in New Homes (up 60%).
The adjusted operating profit was up 59% to £4.3m (2022: £2.7m) driven by revenue growth across all income streams.
The balance sheet showed year-end cash of £11.3m and no borrowings (31 January 2022: £8.4m and no borrowings).
Traffic and leads reduced year-on-year reflecting an abnormally buoyant property market in the first half of the previous year and a strategic focus on serious property seekers and high-quality leads resulting in a significant increase in valuation opportunities, up 26% on prior year.
Jason Tebb, CEO of OnTheMarket, commented:
“I am delighted to report a strong financial performance with record revenues and profits. Our ongoing strategic progress continues to enhance our offering for estate agents, lettings agents and housebuilders, whilst driving the network effects of the business.
“We continue to develop the portal, delivering high quality leads from serious property seekers.
“We are making good strategic progress with OnTheMarket Software, providing solutions for our agents to automate and streamline their own processes, saving them time and money.
“Our data and market intelligence tools provide insights and value-add opportunities.
“Our Consumer communications and monetisation plans are taking shape, with strategies to further build our network effects and generate additional revenue streams for our business, and our customers.
“OnTheMarket was founded by agents to bring more competition into the market with a promise of long-term, fair and sustainable pricing.
“We remain focused on that promise and delivering increased value for our customers at a time when agents are facing unjustifiable price rises elsewhere.
“I would like to thank all our customers for their continued support in OnTheMarket. This support, and the strength of our platform, provides us with confidence and excitement for the future.
“Now is our time; we have a great platform, great services and more importantly, supportive customers, many of whom are shareholders of this great business – we are aligned in our objectives and we are looking forward to delivering for them.”
The 2022 results are restated “following an internal review of agents that were entitled to shares as part of long-term listing agreements, it was identified that an acceleration of the agent recruitment charge was required in prior periods due to incomplete agent charges, incorrect fair values used at the grant date and incorrect classification of the charge in line with the Group’s accounting policies.” Profit for the year after income tax reduced from £108k to £(213)k and Agent recruitment expense increased from £1,985k to £2,306k.
