OntheMarket swings to first profit amid property boom

OnTheMarket swung to its first annual profit after business increased during the UK's housing market boom.

The online property portal reported £2.7m pretax profit for the year to the end of January compared with an £11.5m loss a a year earlier. Revenue rose 22% to £23m and average revenue per advertiser rose 16% to £142.

Visits per advertiser rose 13% and average monthly leads per advertiser jumped 22% despite the shutdown of the UK property market during the first Covid-19 lockdown and advertising spend halving to £5.9m.

OnTheMarket said after restrictions were lifted average visits per advertiser rose 30% and average monthly leads increased 31% in the second half. The government's stamp duty holiday, pent-up demand and people rethinking their housing needs have spurred a boom in property market activity.

OnTheMarket said it had a positive start to the current financial year in line with its expectations. The company said it would repay £449,000 of government grants received during the pandemic.

Jason Tebb, chief executive, said: "I am delighted to be reporting a strong performance in my first set of results. The UK property market continues to be very active and our significant market opportunity remains."

Tebb took over in December and has revamped the company's strategy. OnTheMarket was set up by a group of estate agents in 2015 as a rival to Rightmove and Zoopla, the two biggest online marketplaces.