OnTheMarket PLC (AIM:OTMP) has reported record group revenues and profits in its audited results for the year ended 31 January 2023, showcasing its continued strategic progress.
The technology-enabled property business, which operates the onthemarket.com property portal, saw group revenues increase by 14% and average revenue per advertiser (ARPA) grow by 12%, reflecting the expansion of paying customers, strong product sales, and robust growth in New Homes, which saw a 60% increase.
Adjusted operating profit rose by 59% to £4.3mln, driven by revenue growth across all income streams, and the company's balance sheet remained strong, with £11.3mln in cash and no borrowings, compared to £8.4mln in cash at the end of January 2022.
Despite positive financial results, OnTheMarket Software incurred an impairment charge of £1.5mln. However, cash generated from operating activities reached £7.9mln, representing an operating cash conversion rate of approximately 99% of adjusted EBITDA.
The company noted a reduction in traffic and leads year-on-year, attributed to the abnormally buoyant property market in the first half of the previous year. But OnTheMarket focused on attracting serious property seekers and high-quality leads, resulting in a significant increase in valuation opportunities, up 26% from the previous year.
Looking ahead, the company said it has seen a positive start to full-year 2024, with current trading in line with expectations. However, it acknowledged the uncertain macroeconomic environment, which may result in tougher trading conditions in the second half of the year.
Despite challenges, the company remains confident in its growth potential, backed by its operational and financial progress, loyal advertiser base, and strategic development efforts.
In the results statement, Jason Tebb, CEO of OnTheMarket, commented: "I am delighted to report a strong financial performance with record revenues and profits. Our ongoing strategic progress continues to enhance our offering for estate agents, lettings agents and housebuilders, whilst driving the network effects of the business."