OnTheMarket (OTMP)

Business description

OnTheMarket is an estate agent-backed company, which operates a synonymous property portal. It is the third-largest UK residential property portal provider in terms of traffic.

Investment summary

OnTheMarket's (OTM) listing raised £30m to build market share in the UK online property portal space. Founded as a mutual by estate agents, it is more closely aligned to their interests than the two main incumbents. The monies raised will be invested in sales and in IT, as well as funding a major marketing campaign to grow the agency network and increase brand awareness. This process has started according to plan, with good levels of industry interest and sales pipeline. The group will return a loss for FY19 and FY20, with profits modelled from FY21 onwards. Backed by long-term agent contracts, OTM has high levels of recurring income on a scalable platform.

Last updated on 02/03/2018

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 17.9 (1.1) (3.1) (8.8) N/A N/A
2017A 17.8 3.3 1.0 2.7 53.0 N/A
2018E 16.0 5.0 2.2 6.2 23.1 N/A
2019E 18.0 (19.7) (21.4) (35.3) N/A N/A

Last updated on 20/02/2018

Latest research

First day OnTheMarket

Initiation | Media | 09/02/2018

Latest video

Bitesize briefing – OnTheMarket

Industry outlook

The UK online property market is dominated by two portal providers, Rightmove and ZPG, the former being the clear market leader. While they generate high traffic, prices charged to participating agencies have risen, with no respite in sight prior to OTM’s arrival. OTM was set up as an alternative to provide a positive search experience for consumers, while acting in the interests of agents. The IPO proceeds are helping to scale the business; the listing also means that OTM can issue equity to attract key agents to the network on long-term contracts, with others initially being brought in with discounted or free listings.

Last updated on 02/03/2018

Key management

Clive Beattie, CFO

Company address

PO Box 450
155-157 High Street
GU11 9FZ
United Kingdom
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