Challenger property website OnTheMarket sees 2021 revenues beat expectations as demand keeps up
- Revenues for full-year ending 31 January to be ‘slightly ahead’ of expectations
- The firm also expects to make a profit in the full-year, instead of just breakeven
- But OnTheMarket shares are down 1.5% in morning trading
Challenger property website OnTheMarket has told investors that revenues for the full year will beat expectations thanks to strong demand from house seekers during its second half.
The estate-agent-owned website, which is looking to disrupt Rightmove’s dominance, also expects to make a profit in both the half and full-year, instead of just breakeven as it forecast in October.
It said revenues for the full year to the end of January will come in ‘slightly ahead of market expectations’, while adjusted operating profit will be ‘at least’ £2.5million for the full year.
OnTheMarket hailed ‘strong’ performance and said it achieved ‘a great deal’ in 2021
The profit improvement is down to continued cost-cutting and a switch to capitalising development spending rather than expensing it in the income statement.
The group left its outlook for the current year unchanged and said it looked to the future ‘with confidence’.
Shares in the AIM-listed company pushed higher at the open, before losing those gains to trade down 1.5 per cent to 117.16p by 10:30am on Friday.
OnTheMarket chief executive, Jason Tebb, said: ‘We are pleased to be reporting a strong performance and further operational progress in keeping with our objective of building a tech-enabled property business.
‘We achieved a great deal in 2021, culminating in the launch of our new website and branding which have been well received by agents and serious property seekers.
‘There is a lot more to come and we look forward to delivering this in the year ahead.’
The company made a profit for the first time last year despite a shutdown in the property market at the start of lockdown, posting after-tax profits of £2.7million and revenues of £23million.
OnTheMarket was set up seven years ago by a consortium of estate agents, including Knight Frank and Savills, to compete with the two dominant online property portal firms Zoopla and Rightmove.
A legal action was launched against the business two years later, claiming that its ‘one other portal rule,’ which prevented estate agents from using two competing websites simultaneously, was anti-competitive.
However, it won the case and raised £50million that December from listing on the London’s junior market towards expanding its technology, marketing, and sales operations.