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OnTheMarket (OTMP)

Business description

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

Investment summary

OTM continues to make good progress in building market share and improving brand recognition both with agents and the public, helped by the renewed TV campaign. As at 12 December, the group had over 12,000 agency branches under listing contracts – a 64% share. This includes 60 offices which have recently entered full tariff paying listing arrangements. The challenge now is to convert the balance of agents to paying clients and grow the proportion holding OTM shares. The case against OTM on competition grounds by Gascoigne Halman has now been dismissed by the Court of Appeal. We continue to model the group moving into profit and becoming cash-flow positive in FY21. On an EV/revenue basis, backed by DCF modelling, the shares have good potential upside.

Last updated on 01/02/2019

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2017A 15.6 3.3 1.0 (1.4) N/A N/A
2018A 13.5 5.4 2.7 7.4 13.4 N/A
2019E 15.0 (14.4) (16.0) (27.4) N/A N/A
2020E 32.0 (7.8) (9.4) (12.5) N/A N/A

Last updated on 29/01/2019

Latest research

Networking

Update | Media | 11/10/2018

Spreading the word

Update | Media | 07/06/2018

First day OnTheMarket

Initiation | Media | 09/02/2018

Latest video

Bitesize briefing – OnTheMarket

Industry outlook

Historically, the UK online property market was 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. In a market where the volume of transactions has been under pressure, achieving good visibility is even more important. Silver Lake's takeover of ZPG highlights the value.

Last updated on 01/02/2019

Key management

Ian Springett, CEO
Clive Beattie, CFO

Company address

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