OnTheMarket.com (OTMP ), a popular property portal, updated markets this morning with a performance report, to be delivered by non-executive Chair Christopher Bell at the company's AGM meeting later today.
"Our financial year to 31 January 2022 (FY22) saw another year of significant strategic progress, with our financial and operational performance and substantial, loyal advertiser base providing us with a resilient base for continued growth." the statement opened.
OnTheMarket detailed the success of its 4 pillar strategy in establishing its business across the broader property ecosystem for its partner agents, customers, and consumers. The 4 pillars are Portal, Software Solutions, Data and Market Intelligence, and Communications and Marketing.
Across those 4 pillars, the company detailed a number of milestones. It completed a refresh of its OnTheMarket.com user experience, launching a new website and branding. It also completed the acquisition of Glanty, with development ongoing of a CRM system and associated products targeted at the sales market.
Additionally, OnTheMarket established a partnership with Sprift Technology to provide its customers with "best-in-class" data and market intelligence tools, as well as a full-service canvassing and prospecting system. And finally, it implemented an updated marketing and communication strategy with a new TV ad to generate leads.
OnTheMarket's balance sheet remains strong with £8.4m in cash and no borrowings following the acquisition of Glanty.
"The Group has made a positive start to FY23, and trading has been in line with the Board's expectations. Notwithstanding the well-publicised macro-economic uncertainty, the fundamentals of the UK residential property market currently remain good, with market activity remaining high and demand for properties significantly outweighing supply." the statement concluded.
OnTheMarket also announced today the issue of 170,041 ordinary shares at 0.2p each, expected to become effective 29 July 2022. These shares have been issued to certain agents who signed new long-term listing agreements.
View from Vox
OnTheMarket was recently featured in our analysis of the housing market, where CEO Jason Tebb gave his view of the current state of the housing market. While his company was seeing certain signs of a downward shift in demand, to be realised in the next 6 months, the overall health of market remained strong with 82% of sellers confident they would sell their property in 3 months, according to the company's June sentiment-based index.
With its strong balance sheet, OnTheMarket is well-positioned to capitalise on ongoing demand in the housing sector. The company's active product development, including an updated UI, development of a CRM system, data and market intelligence, and new marketing initiatives, should keep it competitive and growing during the current challenging economic climate. OnTheMarket's valuation has largely withstood the current downturn in equities, with OTMP shares roughly flat over the past 12 months.
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