Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

OnTheMarket reports strong growth but still has some way to go to catch market leaders

The agent-backed company has signed more than 11,000 estate and letting agents to its site
estate agent signs
The signs are encouraging - though OnTheMarket is well behind the industry leaders

High Street estate agents used to be universally reviled for their sharp tactics and eye-watering commissions.

Today it’s almost possible to feel sorry them with the proliferation of successful property sites doing the job at a fraction of the cost.

Rightmove (LON:RMV), Zoopla and Purplebricks Group (LON:PURP) have taken the business model online and made hundreds of millions of pounds for the early backers of these businesses.

However, the fightback has begun,  in fact, it began eight months ago when OnTheMarket PLC (LON:OTMP) listed.

The agent-backed company operates the property portal of the same name and based on figures released Tuesday it appears to be going from strength to strength.

Numbers doubled 

It now signed more than 11,000 estate and letting agents to the site, double the number it had in February when it IPO’d on AIM.

Traffic is also through the roof with the company revealing it receive 17.4mln visits in September, having trebled virtual footfall in the last eight months.

That’s still some way short of industry leader Rightmove, which was averaging just under 140mln visits per month when it last updated the City.

Another sanity check: Rightmove has double the number of agents signed up to its service.

Rapidly building scale

“Our strategy to grow rapidly the scale of the portal is working and these latest milestones indicate that more property-seekers using OTM and viewing more properties - many of which are listed with us on a new and exclusive basis - is a recipe for generating more value to agents,” said chief executive Ian Springett.

“That value is not just in the direct advertising return we provide but also in creating much-needed competition in a market previously dominated by just two large portal groups."

While today’s figures will likely be applauded, there is one area that remains a disappointment for those who bought the stock on listing: the share price, which at 144p is still 21p below the price they paid.

View full OTMP profile View Profile

OnTheMarket PLC Timeline

Related Articles

September 13 2018
At 61,000 properties under its management, Belvoir is the UK’s second largest lettings agent
Care room
September 05 2018
It is not the only listed operator in the healthcare sector but it is one of the few property companies to offer exposure to what is a low-risk, non-cyclical market
industrial property warehouse
June 12 2018
Custodian’s portfolio is weighted towards industrial sector and split between industrial, retail, office and other properties

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use