TIDMOTMP
RNS Number : 4679I
OnTheMarket plc
14 December 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.
14 December 2020
ONTHEMARKET PLC
("OnTheMarket", the "Group" or the "Company")
TRADING UPDATE
OnTheMarket plc (AIM: OTMP), the majority agent-owned company
which operates the OnTheMarket.com property portal, is pleased to
announce the following update on trading.
Current trading ahead of expectations
In the announcement of its interim results on 13 October 2020,
OnTheMarket stated that the Group expected revenues and costs to
increase in the second half of the year to 31 January 2021 from
those reported for the six months to 31 July 2020, as it invests to
enhance service and increase value to customers. The Group also
announced expectations to achieve a broadly breakeven adjusted
operating profit(1) position for the full financial year.
As a result of continued operational progress and strong
consumer engagement, the Company now expects to deliver revenues
and adjusted operating profit above market expectations for the
current financial year to 31 January 2021. Revenues are expected to
be no less than GBP22.5m, with adjusted operating profit no less
than GBP1.5m. These expected results reflect the measures taken
during the year to support agents through customer discounts,
whilst reducing costs and conserving cash, particularly through a
reduction in marketing expenditure.
Cash position
At 30 November 2020, the Company had net cash of GBP10.9m and,
excluding deferred creditor payments of GBP0.4m, no borrowings.
This represents an effective increase of GBP2.2m from 30 September
2020, when the Company had net cash of GBP10.3m and deferred
creditor payments of GBP2.0m.
It is expected that marketing expenditure, to support consumer
engagement and lead generation for advertisers, will be higher in
December and January than in October and November. As such, the
cash balance is likely to reduce slightly to 31 January 2021 but
remain strong, with sufficient scope to invest in the business.
Cash balances will also naturally fluctuate as creditor and
taxation payments fall due; nevertheless, the Board continues to
focus on balancing investment in the proposition whilst carefully
managing the Group's financial resources.
Outlook
The Company continues to monitor the impact of COVID-19. At this
stage, in light of the ongoing uncertainty and as a prudent measure
until greater clarity exists, the Company is not providing
financial guidance beyond the current financial year. With a strong
cash position, the Company is planning to increase investment in
the business in the coming year, particularly in new products and
services, people and through restoring marketing expenditure to
more usual levels. This will position OnTheMarket to take advantage
of the significant growth opportunities available, benefiting the
Group in the medium and long term.
Clive Beattie, Chief Financial Officer, commented:
"As we approach our financial year end, I am pleased to report
on a strong performance since our interim results announcement,
achieved through the continued hard work and commitment of my
colleagues and the support of our loyal customers.
"Our revenue growth and financial discipline form the strong
platform from which we will continue to provide increasing value to
our customers, whilst our agent ownership and support, and our
commitment to fair pricing, will continue to differentiate
OnTheMarket."
Footnotes
1) Adjusted operating loss or profit is defined as operating
loss or profit before share based payments (including charges
relating to shares issued for agent recruitment), share of profit
or loss from associates, 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 loss or profit.
ENDS
For further information, please contact
OnTheMarket
Clive Beattie, Chief Financial Officer 0207 353 4200
Tulchan Communications
James Macey White
Giles Kernick
William Booth 0207 353 4200
Zeus Capital (Nominated Adviser/Joint
Broker)
Jamie Peel, Martin Green, Daniel Harris
(Corporate Finance)
John Goold, Benjamin Robertson (Broking) 0203 823 5000
Shore Capital (Joint Broker)
Daniel Bush, John More (Corporate Finance)
Fiona Conroy (Corporate Broking) 0207 408 4090
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.
With almost 3,800 estate and letting agents as shareholders, or
under contract to become shareholders, operating 6,800 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 "New & exclusive" properties 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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