OnTheMarket posts deeper losses but investments start to pay offComments Off on OnTheMarket posts deeper losses but investments start to pay off
OnTheMarket, the online property firm set up by estate agents to challenge Rightmove and Zoopla, on Thursday reported wider losses but pointed to rising momentum around the business.
Since floating on the junior market last year at 165p per share the firm has been trying to entice agents to list on its website with cheaper deals than its rivals.
That, coupled with investments into tech and marketing, contributed to pretax losses of £7.1 million in the six months to July 31, compared with a £5.7 million loss a year earlier.
The portal’s shares have halved since it listed on AIM and today lost 1.75p to 81.75p.
But boss Ian Springett said the moves are starting to pay off. Revenues rose 14% to £8 million in the first half and more companies have started committing to full-price long-term contracts.
Last month a record 27.2 million people visited OnTheMarket’s website and there are about 650,000 properties listed on it.
Springett cautioned that a “wait and see approach” from buyers amid Brexit uncertainty is delaying purchases. However, he told the Evening Standard: “It’s likely that political certainty will reignite the muted market in terms of transaction volumes.”