OnTheMarket turns first profit since launch
The property portal said it has enjoyed a strong year despite Covid forcing the housing market to be suspended during the first lockdown.
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Your support makes all the difference.Online property business OnTheMarket enjoyed a strong boost in revenues in the 12 months to the end of January, despite the Covid crisis.
The company, first launched in 2015, also enjoyed its first full year of profits and said it saw rises in average monthly visits to its website – although advertising revenue fell during the year.
Revenues rose 22% to £23 million, with pre-tax profits hitting £1.14 million, compared with an £11.7 million pre-tax loss a year earlier.
Bosses said they have completed a strategic assessment to increase business, including better use of customer data to convert more site visits into sales.
The pandemic saw the entire housing market essentially suspended during the first lockdown in March 2020, leading to a fall in advertising – down 51% on 2020 to £5.9 million.
But the company said that, since Government initiatives were introduced to stimulate the housing market, business has grown, including visits to its portal up 30% in the second half of the year and average monthly leads per advertiser – a key metric in the sector – up 31%.
Despite the unprecedented conditions we have faced, we have continued to grow the business and achieve profitability
Chief executive Jason Tebb said: “Despite the unprecedented conditions we have faced, we have continued to grow the business and achieve profitability.
“OnTheMarket has come a long way since its launch by agents in 2015. From this position of strength, it is now time for the next stage of our development, and our new strategy is based on a clear vision of building a tech-enabled property business.”
The company has also completed the acquisition of property technology business Glanty and has launched a series of commercial partnerships, he said.
OnTheMarket added that the recovery has meant it will return £449,000 claimed in furlough payments and remain positive for the year ahead.