TIDMOTMP
RNS Number : 7152Q
OnTheMarket plc
23 June 2020
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
23 June 2020
ONTHEMARKET PLC
("OnTheMarket", the "Group" or the "Company")
Agent Support Package Extension and Record Leads
OnTheMarket plc, the majority agent-owned company which operates
the OnTheMarket.com property portal, announces today an extension
to the payment support initiative for its agent customers to help
ease the continuing impact of the COVID-19 situation.
2 month discount extension
On 19 March 2020, OnTheMarket announced a 3 month discount to
listing fees to assist agent customers who were facing the
uncertainty of the evolving COVID-19 situation. The initial
discount period was due to expire on 25 July 2020.
To further help to reduce the cash flow pressure which agents
are continuing to face, OnTheMarket is now extending listing fee
discounts for a further 2 months to 25 September 2020. The discount
will remain at 33% for the first month and will be 20% for the
second month. These discounts will be given to all OnTheMarket
agent customers who are paying on full-tariff listing
agreements.
While revenues will be impacted in the short term, the Group
will continue to conserve cash through the careful management of
costs. As at 31 May 2020, the Group had net cash of GBP8.8m, and,
excluding deferred creditor payments of GBP2.3m, no borrowings.
Record delivery of leads to advertisers
In the past 2 weeks and since the partial relaxation of COVID-19
restrictions, OnTheMarket has seen new records for total leads
delivered to advertisers. Over 430,000 leads were delivered in the
week commencing 8 June 2020 and over 440,000 in the week commencing
15 June 2020. Visits were c.6 million in each week , an increase of
over 280% on the weekly low point during lockdown and over 20% up
on the first week in March 2020, before the impact of the lockdown
on the property market . This has been achieved despite a
significant reduction in marketing spend since the lockdown
commenced on 23 March 2020.
Clive Beattie, Acting Chief Executive Officer, commented: "It
remains the core strategy of OnTheMarket, as the majority
agent-owned portal, to deliver value and to provide first-class
support for our agent customers.
"Whilst we have seen record levels of leads in recent weeks,
which is a testament to the strong engagement OnTheMarket.com has
with consumers who are currently active in the property market, we
believe agents continue to face challenges and that offering this
discount extension package will assist them as they continue to
restart operations.
" At the same time, we also need to begin increasing our own
levels of service support and advertising on behalf of our
customers as their markets reopen. The extended discounts allow us
to support customers alongside a gradual increase in these
activities whilst conserving our cash."
ENDS
For further information, please contact:
OnTheMarket 0207 353 4200
Clive Beattie, Acting Chief Executive Officer
Tulchan Communications 0207 353 4200
James Macey White
Giles Kernick
Sophie Duckworth
Zeus Capital (Nominated Adviser/Joint Broker) 0203 823 5000
Jamie Peel, Martin Green, Daniel Harris
(Corporate Finance)
John Goold, Benjamin Robertson (Broking)
Shore Capital (Joint Broker) 0207 408 4090
Daniel Bush, John More (Corporate Finance)
Fiona Conroy (Corporate Broking)
Background on OnTheMarket :
OnTheMarket plc, the agent-backed 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.
With over 3,000 estate and letting agent shareholders, operating
over 6,000 offices, 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 thousands
of "New & exclusive" properties every month to serious
property-seekers 24 hours or more before agents release these
properties to other portals
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END
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