OnTheMarket PLC (AIM:OTMP) said it expects revenues and profit for the current financial year to come in above expectations after it achieved a strong performance in the first six months.
The estate agency-owned property portal said adjusted operating profits soared 163% to £2.1mln in the first half to 31 July 2021, on the back of revenue growth of 46% to £14.9mln. Average revenue per property advertiser (ARPA) rose 52%.
Profit after tax dropped 29% to £0.5mln due to non-recurring costs arising from the acquisition of Glanty, the repayment of government grants and an increase in non-cash share-based agent recruitment charges.
Average monthly advertisers listed fell 5%, after agents on long-term free of charge contracts were asked to migrate to paying contracts.
Agency branches listing increased by 5% and new homes developments listed by 6% since the end of January, while branches listed under paying contracts rose by 3% to 10,190 from end-January to end-July.
Looking ahead, OnTheMarket said it now anticipates revenues to be slightly ahead of expectations and adjusted operating profit to be substantially ahead of expectations for the year to 31 January 2022.
It said demand for residential properties in the UK has remained at very high levels, but noted that sales and lettings instructions remain subdued.
It said agents using OnTheMarket.com as their only property listings portal now represent 968 branches.
Net cash was £9.9mln at the end of July.
Jason Tebb, chief executive officer of OnTheMarket, commented: “With a growing and loyal customer base, strong engagement with serious and active property-seekers, progress against our strategic roadmap and a balance sheet and cash generation to support the group's current strategy, the board looks to the future with confidence."