OnTheMarket's loss widens after costs almost triple

OnTheMarket reported deeper annual losses on Thursday after the company's administrative expenses almost tripled on the back of increased marketing spend and the addition of new employees.

The online property platform reported a loss before tax of £14.5m for the year ended 31 January, marking a further deterioration versus the £12.1m loss booked the year before, as administrative expenses jumped from £9.7m to £27.8m on the back of an increase in the company's marketing spend from £2.2m to £14.9m.

The rise in costs was also spurred by higher staff numbers, with the average size of the company's staff having risen by 44 to reach a monthly average of 105.

Meanwhile, revenue came in 5% higher at £14.2m as the business, which has signed listing agreements with UK estate and letting agents owning more than 12,500 offices, aims to increase its number of paying customers by persuading agents on free deals to sign up for full membership.

A total of almost 1,000 branches have been now been signed under paying contracts since conversion commenced, with an average revenue per account of £337 per month.

Ian Springett, chief executive of OnTheMarket, said: "OnTheMarket has delivered a year of strong operational progress since its IPO in February last year. The group's strategy to build strong network effects and deliver increasing value to our agents is working. We are established as one of the leading portals and our progress to date has given us confidence that we can continue to build on this strong start and develop a market-leading, agent-backed alternative to Rightmove and Zoopla."

Looking ahead, the company said that ongoing growth in paying contracts will be key to future success, with the company continuing to focus on this by increasing its offering of products and services required by agents.

OnTheMarket's shares were down 4.24% at 100.55p at 0923 BST.