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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 (OTM) continues to make good progress in building its market share and improving its brand recognition both with agents and the public. The group now has over 11,000 agency branches under listing contracts – a 58% share of the total. This increased reach is driving higher levels of traffic to the portal and delivering good leads to agents. The challenge now is to convert these agents to paying clients and grow the proportion holding OTM shares. 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 11/10/2018

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 18.0 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 11/10/2018

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 28/09/2018

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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