TIDMOTMP
RNS Number : 5932Q
OnTheMarket plc
19 October 2023
19 October 2023
ONTHEMARKET PLC
("OnTheMarket", "OTM", the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHSED 31 JULY 2023
REVENUE AND PROFITABILITY DEMONSTRATING RESILIENCE
OnTheMarket plc (AIM: OTMP), which operates the OnTheMarket.com
property portal, today announces its unaudited interim results for
the six months ended 31 July 2023 ("H1 23/24").
Highlights
Restated
Period ended 31 July 2023 2022 Change
---------- ----------- -------
Group revenue GBP16.9m GBP16.8m 1%
---------- ----------- -------
Adjusted EBITDA(1) GBP3.1m GBP3.1m -
---------- ----------- -------
EBITDA GBP1.9m GBP1.9m -
---------- ----------- -------
Adjusted operating profit(2) GBP1.1m GBP1.3m (15)%
---------- ----------- -------
Operating (loss)/profit GBP(0.1)m GBP0.1m (200)%
---------- ----------- -------
(Loss)/Profit after tax GBP(0.1)m GBP0.4m (125)%
---------- ----------- -------
GBP11.3(3)
Period-end net cash GBP11.5m m 2%
---------- ----------- -------
ARPA(4) GBP201 GBP205 (2)%
---------- ----------- -------
Average monthly advertisers(5)
listed 13,323 13,118 2%
---------- ----------- -------
Period-end advertisers 13,363 13,212(6) 1%
---------- ----------- -------
Period-end agency branches 10,414 10,367(6) (-)%
---------- ----------- -------
Period-end new homes developments 2,949 2,845(6) 4%
---------- ----------- -------
Traffic/visits(7) 119m 106(8) m 12%
---------- ----------- -------
Average monthly leads per advertiser 101 103(8) (2)%
---------- ----------- -------
Resilient financial performance
-- Revenue increased by 1% with ARPA down by 2%.
-- Strong growth in New Homes revenues, up 26% and boosted by
increases in both advertiser numbers and ARPA.
-- Adjusted EBITDA of GBP3.1m in line with the prior year and
adjusted operating profit of GBP1.1m down 15%
-- Strong balance sheet including net cash of GBP11.5m and no
borrowings (31 January 2023: GBP11.3m).
Further strategic and operational progress
-- Continued progress with our strategy of building a
differentiated, technology-enabled property business
-- Average monthly advertisers listed up 2% to 13,323, with
period end agency branches up 1% to 10,414
-- Period end new homes developments listed have increased 4% to 2,949
-- 12% increase in traffic reflecting continued development of
portal and improved consumer experience
Outlook
-- The macro-economic backdrop remains challenging, particularly
for the property market, with lower transaction volumes, stubborn
inflation, high cost of living, higher interest rates and a
reduction in average house prices. The Board expects this to impact
customers' businesses, particularly their discretionary spend which
may in turn impact annual revenue.
-- OnTheMarket will focus on opportunities to grow advertiser
numbers via packages and short term incentives to stimulate trial
and demand, which will in turn support accelerated revenue growth
when market conditions improve.
-- In H2 the Group will focus on customer retention and
acquisition which the Board believes will accelerate growth in
future periods, while maintaining a level of marketing spend to
maximise portal traffic and lead generation for customers. As a
result of these factors and decisions, our previously stated
aspiration of growing both revenue and profits from last financial
year may not be realised.
-- The Board believes that the company continues to develop an
innovative and easy-to-use portal, providing a strong platform to
drive revenue growth in the mid-term through investing in consumer
awareness, traffic and leads, continuing its strategy to become a
tech-enabled property business across the entire customer and
consumer ecosystem.
Jason Tebb, Chief Executive Officer of OnTheMarket,
commented:
"We are pleased with our performance in the first half, despite
the difficult market conditions. Throughout this we have stayed
true to our commitment to agents by continuing to offer value at a
time when they need it most.
Underpinning our resilience are the strong foundations we have
built. We continue to be supported by our agents and this positions
us well for the future. I would like to thank the OnTheMarket team
for their continued efforts."
Footnotes
1) Adjusted EBITDA is operating profit before amortisation,
depreciation, 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 or loss.
2) Adjusted operating profit is adjusted EBITDA after
amortisation and depreciation. This is an alternative performance
measure and should not be considered an alternative to IFRS
measures, such as revenue or operating profit or loss. Please see
the Financial Review and Key Performance Indicators section below
for a reconciliation of operating profit to adjusted operating
profit.
3) Period-end net cash in the 2022 column is net cash at 31
January 2023. Net cash at 31 July 2022 was GBP8.7m.
4) Average revenue per property advertiser, being revenues due
from property advertisers before the deduction of non-cash
share-based agent recruitment charges for a period divided by the
number of property advertisers for that period. ARPA presented
herein is the average of the monthly ARPAs for the period unless
otherwise stated. A property advertiser is a listed agency branch
or a new home development advertising on OnTheMarket.com.
5) Advertisers are either estate and lettings agent branches or new home developments listed at OnTheMarket.com.
6) Period-end figures in the 2022 column are at 31 January 2023.
Advertisers, agency branches and new home developments as at 31
July 2022 were 12,876, 10,460 and 2,416 respectively.
7) Visits comprise individual sessions on OnTheMarket's
web-based portal or mobile applications by users for the period
indicated as measured by Google Analytics.
8) Figures in the 2022 column are for the 6 months to 31 January
2023. Visits and average monthly leads per advertiser in the 6
months to 31 July 2022 were 1 38m and 107 respectively.
9) Unless otherwise stated, all figures refer to the six months
ended 31 July 2023 and comparative figures are for the six months
ended 31 July 2022 ("H1 22/23").
For further information, please contact:
OnTheMarket
Jason Tebb, Chief Executive Officer
Tom Carter, Chief Financial Officer 0207 353 4200
------------------------
Teneo (Financial PR Adviser) 0207 353 4200
Giles Kernick onthemarket@teneo.com
Barnaby Harrison
------------------------
Zeus Capital (Nominated Adviser/Joint
Broker)
Jamie Peel, Martin Green, James Hornigold
(Investment Banking) 0203 829 5000
Benjamin Robertson (Corporate Broking)
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.
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.
This announcement contains forward-looking statements that are
based on current expectations or beliefs, as well as assumptions
about future events. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as anticipate, target, expect, estimate, intend, plan, goal,
believe, will, may, should, would, could, is confident, or other
words of similar meaning. Undue reliance should not be placed on
any such statements because they speak only as at the date of this
document and, by their very nature, they are subject to known and
unknown risks and uncertainties and can be affected by other
factors that could cause actual results, plans and objectives to
differ materially from those expressed or implied in the
forward-looking statements. There are a number of factors which
could cause actual results to differ materially from those
expressed or implied in forward-looking statements. The Group
undertakes no obligation to revise or update any forward-looking
statement contained within this announcement, regardless of whether
those statements are affected as a result of new information,
future events or otherwise, save as required by law and
regulations.
Chief Executive Officer's Report
The period to 31 July 2023 marked further strategic progress
following our promising FY23 results. We have made significant
progression toward our goal of evolving into a technology-driven
property business that encompasses the entire property journey. As
one of the UK's top 100 most frequented websites (source:
similarweb) and one of the UK's leading search sites, we are well
positioned to capitalise on the strong support from our agent and
homebuilder customers.
Resilient Financial and Operational Performance
Our financial performance has demonstrated resilience, with a 1%
increase in revenue. Despite a 2% decrease in Average Revenue Per
Advertiser (ARPA) attributed to increased customer recruitment
incentives, we saw a 2% growth in monthly advertisers, even after
the expiration of the 5-year lock-in period in February 2023.
The New Homes segment experienced good growth, with revenues up
26%, driven by an increase in advertiser numbers and ARPA.
The Group maintains profitability, reporting an adjusted EBITDA
of GBP3.1 million and an adjusted operating profit of GBP1.1
million.
Our balance sheet remains strong including net cash of GBP11.5
million, with no outstanding borrowings (compared to GBP11.3
million as of January 31, 2023).
Continuous Progress and Strategy: We Listen, Innovate and
Deliver.
Our commitment to customers and property seekers is driven by
our four pillars: portal, software, data and market intelligence,
and consumer communication and monetisation. We continue to blend
traditional agency principles with modern tech solutions, working
closely with our agent and homebuilder partners to understand their
needs.
Enhancing the User Experience: MyPlace
In February, we continued our pursuit of engaging serious
property seekers and optimising interactions with agents through a
series of consumer-facing updates. The newly introduced MyPlace
consumer dashboard offers a range of features and user experience
enhancements, aligning with our focus on supporting agents in
nurturing client relationships and generating high-quality leads.
These updates, part of our ongoing evolution since its website and
branding overhaul in December 2021, include several noteworthy
features:
I'm serious: the 'I'm serious' toggle allows users to signal
their readiness to move and unlocks numerous benefits. By
activating this toggle, consumers streamline their search
experience, stand out to agents, and enjoy one-click lead creation,
real-time WhatsApp inquiries with agents, and access to enhanced
local market data.
MyLists: designed to facilitate third-party interactions,
fostering a more social and collaborative approach to property
search. Users can now involve family and friends in their property
search by adding extra listings to their curated lists and sharing
private comments to gather feedback on specific properties.
Multi-location search: we introduced a new feature for property
seekers - the Multi-Location Search. This innovative tool allows
users to effortlessly explore properties across multiple areas,
simplifying the search process and offering a more convenient way
to find their dream home.
'Very Important Places (VIPs)': enables users to save addresses
of significant locations and see how far listings of interest are
from these places, adding a personalised touch to their property
search. The introduction of profile badges further encourages user
engagement and provides valuable information to agents, promoting a
more qualitative approach to lead generation.
OnTheMarket Software launches TecHub
OnTheMarket Software, part of the OnTheMarket Group, launched
TecHub, an estate agency automation platform featuring a
groundbreaking Home Management tool in February. TecHub streamlines
the sales and lettings process, offering 24/7 automation for
buyers, sellers, landlords, and tenants. It enables users to track
property transactions, receive updates, make decisions, share
information, upload documents, and complete payments at any
time.
Helping renters get 'Rent Ready'
In May, we successfully integrated Canopy into the portal,
offering consumers the ability to become "rent-ready' with a Canopy
RentPassport while delivering pre-qualified leads to letting
agents. This collaboration builds upon their partnership extension
in March 2022 and the launch of the innovative MyPlace consumer
dashboard in February.
Pioneering AI Integration: Transforming Property Search with
'Otiem'
In July, we became the first major UK property portal to
incorporate AI natural-language technology. 'Otiem' enabled users
to effortlessly describe their ideal property, allowing for a more
intuitive and efficient property search experience, while also
providing a platform for voice search through our upcoming mobile
apps. Additionally, we developed AI-powered agent tools to
streamline property listing processes, further enhancing our
commitment to innovation and user experience.
Introduction of OnTheMarket Money: Expanding Financial
Services
We enjoyed a significant expansion of 'OnTheMarket Money'.
Partnering with London & Country Mortgages (L&C), one of
the UK's largest whole-of-market mortgage brokers, this umbrella
brand offers consumers access to a range of financial services and
essential products related to the home-moving journey.
OnTheMarket Money enables consumers to access mortgage products
and guidance through the OnTheMarket portal. The website
enhancements streamlined the process by assisting consumers in
obtaining a Mortgage in Principle and estimating their borrowing
capacity, saving them valuable time before contacting agents. As
part of our commitment to providing value to both consumers and
agents, work continued on plans to introduce additional
integrations, including a fee-sharing mortgage referral solution.
This forms part of our strategy of becoming a comprehensive
technology company, offering services across the property
ecosystem, and fostering consumer interaction opportunities.
Saving agents thousands - online calculator
In April, the "Saving agents thousands" campaign was launched to
educate agents about the financial benefits they could gain from
their membership with OnTheMarket.
The introduction of an educational calculator provided agents
with a tangible tool to quantify the savings they could make
through our platform showing our commitment to fair and sustainable
pricing.
Listening to and delivering for our Scottish customers
In March, we took a pioneering step in the UK property market by
offering a dedicated contact form for Scottish Home Reports,
becoming the first major UK portal to do so.
In Scotland, it is a requirement to produce a Home Report for a
property before it can be listed for sale. Recognising the
importance of these reports to potential buyers, we introduced a
'Home Report' button on the details page of all Scottish
residential listings. Property seekers can easily request these
reports by providing their contact details, leading to an enquiry
that is sent to the agent via email. Agents can also upload Home
Reports directly to the platform, ensuring a seamless process for
consumers and agents alike. Additionally, we now allow agents to
specify closing dates and times for offers on Scottish listings,
making the property search experience even more efficient for
users. These changes were a direct request from our Scottish series
of customer Town Halls.
Recognised as a Top Workplace: The Sunday Times Best Places to
Work 2023
In May, OnTheMarket Group stood out as the only property portal
to be featured in The Sunday Times Best Places to Work 2023. This
nationwide workplace survey distinguished and celebrated the UK's
leading employers, recognizing excellence in various categories,
including workplace wellbeing, diversity, and employee
engagement.
The agents' portal
We are executing our strategy to develop a technology-driven
business. Since joining OnTheMarket, my vision was to develop a
platform and software that I, as a former estate agent, always
wanted, but never had. This understanding of our customers, coupled
with valuable insights gathered from our agent community, is the
driving force behind our strategy. We remain committed to enhancing
our product and service offerings, consistently delivering
exceptional value for money and maintaining fair and sustainable
pricing. However, we have so much more that we want to deliver, and
we have many exciting developments on the horizon.
Sentiment continues to improve towards our business among our
core customer base. In a survey of thethe many hundreds of agents
who attended a Town Hall, a remarkable 91% acknowledged that
OnTheMarket is good value for money and believe we listen to our
customers. This sentiment is a testament to our ongoing engagement
initiatives, where our agent and homebuilder customers have
actively contributed to shaping the future of our business.
Over the past year, we've engaged with thousands of agents
through various channels, including partnering with business
coaching specialists Property Academy to offer a series of
roadshows across the UK, meeting with over 600 agents, the
continuation of our award-winning Town Halls, beta sessions,
developer forums, and one-on-one clinics. We extend our heartfelt
gratitude to all those who have generously shared their time,
feedback, and insights, helping us steer the course of our
business.
As the agents' portal, we are delighted that many leading agency
brands have renewed their contracts, underscoring their belief in
the value we provide and their confidence in OnTheMarket.
Furthermore, we are excited to welcome award-winning house builders
Redrow, one of the UK's largest housebuilders with a network of 14
operational divisions. The agreement demonstrates another
successful period for our New Homes division, with consistent
growth in advertiser numbers.
None of these achievements would have been possible without the
dedication of our people. I am grateful to each one of them for
their sense of purpose in achieving our shared aims and I am
excited to work with them on our plans for the remainder of
2023.
Outlook
The macro-economic backdrop remains challenging, particularly
for the property market, with lower transaction volumes, stubborn
inflation, high cost of living, higher interest rates and a
reduction in average house prices. The Board expects this to impact
customers' businesses, particularly their discretionary spend which
may in turn impact annual revenue.
OnTheMarket will focus on opportunities to grow advertiser
numbers via packages and short term incentives to stimulate trial
and demand, which will in turn support accelerated revenue growth
when market conditions improve.
In H2 the Group will focus on customer retention and acquisition
which the Board believes will accelerate growth in future periods,
while maintaining a level of marketing spend to maximise portal
traffic and lead generation for customers. As a result of these
factors and decisions, our previously stated aspiration of growing
both revenue and profits from last financial year may not be
realised.
The Board believes that the company continues to develop an
innovative and easy-to-use portal, providing a strong platform to
drive revenue growth in the mid-term through investing in consumer
awareness, traffic and leads, continuing its strategy to become a
tech-enabled property business across the entire customer and
consumer ecosystem.
I also want to express my gratitude to our agent and homebuilder
customers for their continued engagement and support.
Without you, none of this would have been possible. I remain
firmly committed to building the best property search site in the
UK with the potential to challenge the market leaders and in doing
so, change the portal landscape, forever.
Jason Tebb
Chief Executive Officer
Financial Review and Key Performance Indicators
Financial review
Revenue for the period was up 1% to GBP16.9m (restated H1 22/23:
GBP16.8m). This was driven by a GBP0.5m increase in New Homes to
GBP2.4m (H1 22/23: GBP1.9m).
The reported operating loss of the Group was GBP(0.1 )m
(restated H1 22/23 operating profit: GBP0.1m). This is further
analysed as follows:
Restated
H1 23/24 H1 22/23
GBP'000 GBP'000
Reconciliation of operating profit
to adjusted operating profit:
Operating (loss)/profit (121) 71
Adjustments for:
Share-based employee incentives 245 205
Professional fees 132 15
Share-based agent recruitment charges 631 580
Staff related costs 66 29
Acquisition related costs 97 97
_________ _________
Operating profit before specific professional 1,050 997
fees, share-based payments and non-recurring ________ _________
items
Non-cash agent recruitment charges within
revenues 5 301
_________ _________
Adjusted operating profit 1,0 55 1,298
_________ _________
Amortisation 1,743 1,476
Depreciation 316 317
_________ _________
Adjusted EBITDA 3,114 3,091
_________ _________
The basic and diluted loss per share in the period were (0.10)p
and (0.10)p respectively (H1 22/23: restated basic and diluted
profit per share 0.51p and 0.47p respectively).
The Group ended the period with cash of GBP11.5m and no
borrowings (31 January 2023: GBP11.3m).
Revenue and ARPA by source
The Group report revenues attributable to products and services
offered to:
-- estate and letting agents;
-- new home developers;
-- OnTheMarket software customers; and
-- other, non-property advertiser customers;
Restated
Period ended 31 July 2023 2022 Change
GBPm GBPm
Group revenue
* Agency 13.7 14.2 (4)%
* New Homes 2.4 1.9 26%
* OnTheMarket software 0.5 0.5 -
* Other 0.3 0.2 50%
________ ________
Total 16.9 16.8 1%
ARPA
* Group GBP201 GBP205 (2)%
* Agency GBP219 GBP222 (1)%
* New Homes GBP135 GBP129 5%
Operational KPIs
Group operational KPIs were as follows:
31 July 31 January Change
2023 2023
Average advertisers
* Group 13,377 13,089 2%
* Agency 10,429 10,547 (1)%
* New Homes 2,895 2,542 14%
Total advertisers 13,363 13,212 1%
* Agency branches 10,414 10,367 (-)%
* New homes developments 2,949 2,845 4%
-- Average monthly advertisers listed were up 2% period on period.
-- Period end agency branches remained flat from 31 January
2023. Since 31 January 2023, new homes developments listed have
increased further, up 4%.
Income statement
The loss for the period attributable to the owners of the Group
was (GBP0.1m) (2022 restated profit: GBP0.4m).
Adjusted administrative expenses of GBP13.8m in H124 was
marginally lower than the prior year (2022 restated: GBP14.0m).
An agent recruitment charge of GBP0.6m (2022 restated: GBP0.6m)
was incurred in relation to non-cash share-based charges arising on
the issue of shares according to agents portal listing agreements
signed in previous years.
Statement of financial position
Intangible assets increased to GBP9.4m (31 January 2023:
GBP8.9m) due to additional capitalisation of staff and consultant
costs incurred in the ongoing development of OnTheMarket.com and
OnTheMarket Software products, partially offset by the amortisation
charge arising on those costs and on costs previously
capitalised.
Cash of GBP11.5m (31 January 2023: GBP11.3m) included GBP0.4m
held by the EBT for purchase of own shares.
Condensed Consolidated Income Statement
For the period ended 31 July 2023
Restated Restated Restated
Unaudited Adjusting Adjusted Unaudited Adjusting Adjusted
6 months Items 6 months Items
to 31 (See to 31 (See
July Note 8) July Note 8)
Notes 2023 2022
GBP'000 GBP'000
-------- ---------- ---------- --------- ---------- ---------- ---------
Revenue 6 16,867 5 16,872 16,789 301 17,090
-------- ---------- ---------- --------- ---------- ---------- ---------
(13,75 (14,92
Administrative expenses (14,929) 1,171 8) 5) 926 (13,999)
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________ ________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
3,11 1,86 3,09
EBITDA 1,938 4 4 1
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________ ________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
(1,7
Amortisation 10 43) (1,476)
-------- ---------- ---------- --------- ---------- ---------- ---------
Depreciation (316) (317)
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________ ________ ________ ________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
1,0
Operating (loss/ profit) (121) 1,176 55 71 1,227 1,298
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
Finance income 50 29
-------- ---------- ---------- --------- ---------- ---------- ---------
Finance expense (8) (8)
-------- ---------- ---------- --------- ---------- ---------- ---------
Share of loss of associate - -
-------- ---------- ---------- --------- ---------- ---------- ---------
Fair value gain on step - -
acquisition
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
( Loss)/Profit before
income tax ( 79) 92
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
Income tax - 291
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
(Loss)/Profit and total
comprehensive income
for the period attributable
to owners of the parent ( 79) 383
-------- ---------- ---------- --------- ---------- ---------- ---------
________ ________
-------- ---------- ---------- --------- ---------- ---------- ---------
(Loss)/Profit per share
from continuing operations Pence Pence
-------- ---------- ---------- --------- ---------- ---------- ---------
Basic 9 (0.10) 0. 51
-------- ---------- ---------- --------- ---------- ---------- ---------
Diluted 9 (0.10) 0. 47
-------- ---------- ---------- --------- ---------- ---------- ---------
The operating (loss)/profit arises from the Group's continuing
operations.
There is no recognised income or expense for the period other
than the (loss)/profit shown above and therefore no separate
statement of other comprehensive income has been presented.
Condensed Consolidated Statement of Financial Position
Unaudited Audited
at 31 at
July 31 January
2023 2023
Notes GBP'000 GBP'000
------ ---------- ------------
ASSETS
------ ---------- ------------
Non-current assets
------ ---------- ------------
Intangible assets 10 9, 390 8,930
------ ---------- ------------
Property, plant and equipment 129 99
------ ---------- ------------
Right-of-use assets 659 951
------ ---------- ------------
Investments 47 47
------ ---------- ------------
Deferred tax asset 1,822 1,822
------ ---------- ------------
_________ _________
------ ---------- ------------
12,0 47 11,849
------ ---------- ------------
Current assets
------ ---------- ------------
Trade and other receivables 3,333 4,682
------ ---------- ------------
Cash and cash equivalents 11,548 11,333
------ ---------- ------------
_________ _________
------ ---------- ------------
14,881 16,015
------ ---------- ------------
_________ _________
------ ---------- ------------
TOTAL ASSETS 26,928 27,864
------ ---------- ------------
_________ _________
------ ---------- ------------
LIABILITIES
------ ---------- ------------
Current liabilities
------ ---------- ------------
Trade and other payables (5,931) (6,371)
------ ---------- ------------
Lease liabilities (559) (560)
------ ---------- ------------
Provisions (142) (639)
------ ---------- ------------
Current tax (7) (7)
------ ---------- ------------
_________ _________
------ ---------- ------------
(6,639) (7,577)
------ ---------- ------------
Non-current liabilities
------ ---------- ------------
Lease liabilities (85) (364)
------ ---------- ------------
Provisions (131) (74)
------ ---------- ------------
Deferred consideration (75) (75)
------ ---------- ------------
_________ _________
------ ---------- ------------
(291) (513)
------ ---------- ------------
_________ _________
------ ---------- ------------
TOTAL LIABILITIES (6,930) (8,090)
------ ---------- ------------
_________ _________
------ ---------- ------------
NET ASSETS 19,998 19,774
------ ---------- ------------
EQUITY ATTRIBUTABLE TO OWNERS
OF
THE PARENT
------ ---------- ------------
Share capital 160 151
------ ---------- ------------
Merger reserve 1,228 1,228
------ ---------- ------------
Other reserve 6,5 19 6,372
------ ---------- ------------
EBT Reserve (213) -
------ ---------- ------------
Retained earnings 12,304 12,023
------ ---------- ------------
_________ _________
------ ---------- ------------
TOTAL EQUITY ATTRIBUTABLE TO
OWNERS
OF THE PARENT 19,998 19,774
------ ---------- ------------
Condensed Consolidated Statement of Changes in Equity
For the period ended 31 July 2023
Share Share Other Merger EBT Reserve Retained Total
capital premium reserves reserve GBP'000 earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 February 2022 149 43,756 5,264 1,228 - (31,730) 18,667
--------- --------- ---------- --------- ------------ ---------- ---------
Profit for the financial
period - - - - - (167) (167)
--------- --------- ---------- --------- ------------ ---------- ---------
Other comprehensive
loss for the financial
Period - - - - - (358) (358)
--------- --------- ---------- --------- ------------ ---------- ---------
______ ______ ______ ______ ______ ______ ______
--------- --------- ---------- --------- ------------ ---------- ---------
Total comprehensive
loss for the period - - - - - (525) (525)
--------- --------- ---------- --------- ------------ ---------- ---------
Transactions with
owners:
--------- --------- ---------- --------- ------------ ---------- ---------
Shares issued for
agent
recruitment shares 2 - 1,108 - - - 1,110
--------- --------- ---------- --------- ------------ ---------- ---------
Capital restructuring - (43,756) - - - 43,756 -
--------- --------- ---------- --------- ------------ ---------- ---------
Share-based payment
charge on employee
options - - - - - 522 522
--------- --------- ---------- --------- ------------ ---------- ---------
______ ______ ______ ______ ______ ______ ______
--------- --------- ---------- --------- ------------ ---------- ---------
At 31 January 2023 151 - 6,372 1,228 - 12,023 19,774
--------- --------- ---------- --------- ------------ ---------- ---------
______ ______ ______ ______ ______ ______ ______
--------- --------- ---------- --------- ------------ ---------- ---------
At 1 February 2023 151 - 6,372 1,228 - 12,023 19,774
--------- --------- ---------- --------- ------------ ---------- ---------
Profit for the financial
period - - - - - ( 79) (79)
--------- --------- ---------- --------- ------------ ---------- ---------
______ ______ ______ ______ ______ ______ ______
--------- --------- ---------- --------- ------------ ---------- ---------
Total comprehensive
loss for the period - - - - ( 79) ( 79)
--------- --------- ---------- --------- ------------ ---------- ---------
Transactions with
owners:
--------- --------- ---------- --------- ------------ ---------- ---------
Shares issued for
agent
recruitment shares 1 - 147 - - 148
--------- --------- ---------- --------- ------------ ---------- ---------
Share-based payment
charge on employee
options 8 - - - 360 368
--------- --------- ---------- --------- ------------ ---------- ---------
Purchase of shares
by EBT (213) (213)
--------- --------- ---------- --------- ------------ ---------- ---------
______ ______ ______ ______ ______ ______ ______
--------- --------- ---------- --------- ------------ ---------- ---------
6,5
At 31 July 2023 160 - 19 1,228 (213) 12, 304 19,998
--------- --------- ---------- --------- ------------ ---------- ---------
______ ______ ______ ______ ______ ______ ______
--------- --------- ---------- --------- ------------ ---------- ---------
Condensed Consolidated Statement of Cash Flows
For the period ended 31 July 2023
Restated
Unaudited Unaudited
6 months 6 months
to 31 July to 31 July
2023 2022
GBP'000 GBP'000
Cash flows from operating activities
Profit for the period after income
tax ( 79) 383
Adjustments for:
Income tax - (291)
Finance income (50) (29)
Finance expense 8 8
Agent recruitment expense 6 36 881
Share-based payment 245 205
Amortisation 1,7 43 1,476
Depreciation 316 317
Acquisition related costs 97 97
Other professional fees - 44
________ ________
Operating cash flows before movements
in working capital 2,9 16 3,091
Decrease/(Increase) in trade and other
receivables 633 (9 4)
Decrease in trade and other payables (2 66) (101)
Decrease in provisions (367) (3)
Tax received - 12
________ ________
Net cash generated from operating
activities 2,9 17 2,9 05
Cash flows from investing activities
Finance income received 48 29
Acquisition of intangible assets (2,20 3) (2,232)
Acquisition of property, plant and
equipment (54) (51)
Purchase of own shares by EBT (2 13) -
________ ________
Net cash used in investing activities (2,4 22) (2,254)
Cash flows from financing activities
Proceeds from issue of shares 9 -
Professional fees incurred - (99)
Repayment of lease liabilities (288) (279)
________ ________
Net cash used in financing activities (279) (378)
________ ________
Net movement in cash and cash equivalents 215 273
Cash and cash equivalents at the
beginning of the period 11,333 8,412
________ ________
Cash and cash equivalents at the
end of the period 11,548 8,685
________ ________
Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash
equivalents comprise cash at bank and in hand. This is consistent
with the presentation in the Statement of Financial Position.
Notes to the Condensed Consolidated Financial Statements
For the period ended 31 July 2023
1. General information
The principal activities of the Group in the period under review
were the provision of online property portal services to businesses
in the estate and lettings agency industry under the trading name
of OnTheMarket.com, and the provision of software services to UK
estate and lettings agents by Glanty under the trading name
teclet.
The Company is a public company limited by shares and it is
incorporated and domiciled in the UK. The address of its registered
office is C/O Almond + Company Limited, 11 York Street, Manchester,
M2 2AW. Its shares are listed on AIM.
2. Significant changes in activity the current reporting period
No significant changes were noted in the current reporting
period.
3. Basis of preparation of half-year report
The interim results for the six months ended 31 July 2023 should
be read in conjunction with the Group's last annual consolidated
financial statements as at and for the year ended 31 January 2023.
These condensed interim financial statements have been prepared in
accordance with the recognition and measurement requirements of
UK-adopted International Accounting Standards (UK-IAS) and adopting
the accounting policies that will be applied in the 31 January 2024
financial statements, but do not contain all the disclosures
required for full compliance with UK-IAS. However, selected
explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in the
Group's financial position and performance since the last annual
financial statements.
The 31 January 2023 full year accounts have been reported on by
the Group's auditors and delivered to the Registrar of Companies.
The auditors' report was unqualified and did not contain any
statements under section 498 (2) or (3) of the Companies Act 2006
or any matter to which the auditors drew attention by way of
emphasis.
The interim financial statements were approved by the board of
directors on 18 October 2023. The interim results do not constitute
statutory financial statements within the meaning of section 434 of
the Companies Act 2006. The half year results for the current
period are unaudited.
4. Going concern
The Group made a loss before tax for the period ended 31 July
2023 of GBP(0.1)m (restated 6 months profit to 31 July 2022:
GBP0.1m). The Group had a period end net cash balance of GBP11.5m
and no borrowings (31 January 2023: GBP11.3m).
The Directors have prepared and reviewed cash forecasts and
projections for the Group for the next 12 months. They have also
conducted sensitivity analyses and considered scenarios where there
is an adverse impact on future revenues, together with the
mitigating actions they may take in such circumstances, such as a
reduction in budgeted discretionary expenditure, a significant
proportion of which relates to advertising and marketing cost that
can be reduced materially at short notice.
The Directors are confident that the Group will remain cash
positive and will have sufficient funds to continue to meet its
liabilities as they fall due for a period of at least a period of
12 months from the date of the half year announcement and have
therefore prepared the half year announcement on a going concern
basis.
5. Judgement and Estimates
There are no new judgements estimates in respect of the six
months to 31 July 2023.
6. Revenue by source
The Group report revenues attributable to products and services
offered to:
-- estate and letting agents;
-- new home developers;
-- OnTheMarket software customers; and
-- other, non-property advertiser customers;
Restated
Period ended 31 July 2023 2022 Change
GBPm GBPm
Group revenue
* Agency 13.7 14.2 (4)%
* New Homes 2.4 1.9 26%
* OnTheMarket software 0.5 0.5 -
* Other 0.3 0.2 50%
________ ________
Total 16.9 16.8 1%
Agency Sales are predominantly billed monthly in advance, and
these are recognised as deferred income. The Group has contract
liabilities of GBP1.5m as at 31 July 2023 (31 January 2023:
GBP1.7m).
Contract liabilities of GBP1.7m at 31 January 2023 were
recognised as revenue in the half year ended 31 July 2023 (2022:
GBP1.7m).
A proportion of sales in the period are billed monthly in
arrears and are recognised as accrued income. The Group has accrued
income amounted to GBP0. 6m for the half year ended 31 July 2023
(31 January 2023: GBP0.6m).
Agency revenue is reduced by GBP5k of agent recruitment charges
during the year (2022 restated: GBP 300k).
All revenue is generated in the UK for the Group's services.
7. Operating Segments
The Group determines and presents operating segments based on
internal information that is provided to the Chief Executive
Officer, who is the Group's chief operating decision maker.
The Group's reportable segments are as follows:
-- OnTheMarket software
-- Rest of the Group
Management monitors the business segments at a revenue and
operating profit level separately for the purpose of making
decisions about resources to be allocated and of assessing
performance. There was no inter-segment revenue during the
period.
Costs, assets and liabilities are not attributed to the
different revenue sources other than for OnTheMarket software and
so segmental reporting under IFRS 8 is not appropriate for the
remainder of the Group.
No customer made up more than 10% of Group revenues in the
current or prior years.
Operating profit in relation to the Rest of the Group segment is
managed together and as there are no internal measures of
individual segment profitability, relevant disclosures have been
shown under the heading Rest of the Group in the table below.
OnTheMarket Rest of Group
Software the Group
6 months ended 31 July 2023 GBPm GBPm GBPm
------------ ----------- ------
Revenue 0.5 16.4 16.9
------------ ----------- ------
Operating (loss)/profit(1) (0.9) 0.8 (0.1)
------------ ----------- ------
Depreciation & amortisation 0.3 1.7 2.0
------------ ----------- ------
OnTheMarket Rest of Group
Software the Group
6 months ended 31 July 2022 (restated) GBPm GBPm GBPm
------------ ----------- ------
Revenue 0.5 16.3 16.8
------------ ----------- ------
Operating (loss)/profit(1) (0.8) 0.7 0.1
------------ ----------- ------
Depreciation & amortisation 0.2 1.6 1.8
------------ ----------- ------
(1) Operating loss is stated after the charge for depreciation
and amortisation.
(2) Assets and liabilities are not separately monitored by the
Chief Operating Decision Maker and therefore not identified
above.
8. Adjusting items
Restated
Unaudited Unaudited
6 months 6 months
to 31 July to 31 July
2023 2022
GBP'000 GBP'000
Share-based employee incentives 245 205
Professional fees 132 15
Share-based agent recruitment charges 631 580
Staff related costs 66 29
Prepayment for employee services 97 97
________ ________
1,171 926
Share-based management incentive charges include employer's
national insurance charged on options exercised in the year as well
as the movement in the expected future employer's national
insurance charged based upon the year-end share price.
Professional fees incurred in the year relate to du e diligence
fees and legal fees relating to the post IPO lock-in share placing
in February 2023
Agent recruitment charges relate to share-based charges arising
on the issue of shares to agents committing to long-term service
agreements in line with the Group's strategy to grow the agent
shareholder base.
Staff related costs relate to costs associated with termination
of employment of employees and costs associated with employee
share-based plans.
Acquisition related costs represent the amortisation of
prepayments for employee services incurred as part of the
acquisition of Glanty Limited (OnTheMarket Software) and amortised
over a three-year period from acquisition.
9. Earnings per share
Restated
Unaudited
Unaudited 6 months
6 months to to
31 July 31 July
2023 2022
GBP'000 GBP'000
Earnings attributable to equity
(Loss)/profit (for the period from
continuing operations
attributable to owners of the company ( 79) 383
________ ________
Total basic earnings and diluted
earnings ( 79) 383
No. No.
Weighted average number of
equity shares
Basic 7 7,825,274 74,769,071
Diluted 79,704,742 80,716,457
Earnings per share Pence Pence
Basic (0.10) 0. 51
Diluted (0.10) 0. 47
10. Intangible assets
Technology Customer Total
Group Development related related
Costs intangibles intangibles
GBP'000 GBP'000 GBP'000
Cost:
At 1 February
2023 19,997 2,892 444 23,333
Additions, internally
developed 1,798 405 - 2,203
_______ _______ _______ _______
At 31 July 2023 21,795 3,297 444 25,536
Amortisation:
At 1 February 2023 13,727 639 37 14,403
Charge for the period 1,4 16 243 84 1,7 43
_______ _______ _______ _______
At 31 July 2023 15,1 43 882 121 16,1 46
Net book value: ________ ________ ________ ________
At 31 July 2023 6, 652 2,415 323 9,390
The development costs relate to those costs incurred in relation
to the development of the Group's online property portal,
OnTheMarket.com. The development costs capitalised above are
amortised over a period of 4 years which represents the period over
which the Directors expect the Group to consume the assets' future
economic benefits. The development costs are amortised from the
point at which the asset is ready for use within the business.
The technology and customer related intangible assets acquired
through business combination relate to the development of software
by OnTheMarket Software for TecLet lettings and TecLet CRM products
and represent the fair value of those assets acquired as part of
the Group's acquisition.
11. Related party relationships and transactions
There were no related party transactions during the period ended
31 July 2023.
12. Post balance sheet events
There were no significant post balance sheet events.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFIAIDLTLIV
(END) Dow Jones Newswires
October 19, 2023 02:00 ET (06:00 GMT)
Onthemarket (LSE:OTMP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Onthemarket (LSE:OTMP)
Historical Stock Chart
From Jul 2023 to Jul 2024
