OnTheMarket Plc (OTMP ), operator of the OnTheMarket.com property portal, released audited results for the year ended 31 January 2023 (FY23).
OnTheMarket reported group revenues and average revenue per account (ARPA) up 14% and 12% respectively, reflecting growth in paying customers and robust product sales. Revenue was up to £34.4m and ARPA increased to £210.
Adjusted operating profit increased 59% to £4.3m, driven by revenue growth, with particularly strong performance in New Homes, up 60%. The company finished the year with a robust balance sheet - year-end cash was a comfortable £11.3m and no debt, compared to £8.4m and no debt in FY22. Cash generated was £7.9m, representing cash conversion of approx. 99% of adjusted EBITDA.
Operationally, OnTheMarket reported a number of developments in its portal, software, data intelligence, and consumer communication. These include new valuation tools, WhatsApp integration, a commercial partnership with Sprift Technologies, OTMP's proprietary Property Sentiment Index, TecLet automated platform, behavioral profiles, as well as new TV and social media advertising.
Overall, OnTheMarket entered FY24 with strong momentum on the back of substantial growth in revenues and operating profit. Still, OTMP identified macroeconomic challenges facing the housing market, namely mortgage affordability, continued inflation, and the high cost of living, all contributing to a slowdown in housing market activity through Q2, setting up a potentially challenging second half.
Yet some of the abovementioned initiatives have acted to diversify revenue streams, helping the company weather what may be a slower H2. So far in FY24, OnTheMarket's trading has been in line with expectations, and we expect its operational and financial momentum to keep it growing through FY24, both in revenue and profitability, despite macroeconomic headwinds.
Follow News & Updates from OnTheMarket: