OnTheMarket fails to excite on stock market debut

OnTheMarket will start trading at 148p today, having failed to set pulses racing when it debuted on the AIM market on Friday.

Shares in OTM fell during their first day of trading. According to Hargreaves Lansdown, they opened on Friday at 163.5p and closed at 148p – a drop of around 9.5%.

The volume of shares traded was 118,288.

That compared with rival portal Rightmove, which ended the day down 0.56% at 4,230p, with 914,230 shares traded.

ZPG finished 0.61% down at 324.2p after 421,377 shares were traded.

OnTheMarket was not helped by the fact that its admission to AIM came at a time of market volatility, with the benchmark FTSE 100 share index falling again by about 0.5% on Friday following heavy losses in Asian markets on Thursday night.

US shares also fell steeply again, with the Dow Jones down by more than 1,000 points for the second time in a week on Friday.

Nonetheless, it was a disappointing debut for OTM as it finally brought its long-awaited stock market flotation over the line.

Investment magazine Shares rated it a “miserable start to life as a listed company” and pointed to a report from research group Edison which said the business was forecast to make considerable losses in 2019 and 2020 before returning to profitability in 2021.

It said: “It would be possible to deliver profits at an earlier stage by turning down the marketing tap, but that would not be in the interests of building a sustainable business.

“Our model indicates average revenue per partner agency (ARPA) bottoming out in the current financial year to January 2019 as new agencies are brought on board, then rising towards the level achieved by Zoopla, which is less than half that charged by Rightmove.”

Meanwhile, ZPG, the parent company of OTM’s rival portal Zoopla, made an announcement on the same day that it had hit record traffic levels in January 2018.

ZPG said that visits to its property websites hit a high of over 58 million visits during January, up 10% year on year, with mobile traffic accounting for 60% of visits.

It added that visits to its comparison websites rose to nearly 10m, up 8% compared to the same period last year.

Aside from Zoopla, ZPG owns brands including uSwitch, Money, PrimeLocation and SmartNewHomes.

OTM’s flotation was first announced last August when OTM said it hoped to raise £50m, valuing the business at between £200m and £250m.

It ended up conditionally raising £30m through the placing of new shares, some £20m less than originally expected.

OnTheMarket said it would have properties listed by over 5,500 estate agents’ branches on its portal when it floated.

A number of agents on OTM will still have to observe the One Other Portal (OOP) rule.

The portal will be dropping the stipulation for new joiners, and is also lifting its ban on online agents.

While new joiners and those with new contracts will be free to list on all three of the main portals – Rightmove, Zoopla and OTM as well as others – those agents on existing contracts will have to stick to the original terms.

The shares’ ticker is OTMP.

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17 Comments

  1. smile please

    If I was an agent with shares I would look to dump them today before they lost more value.

    Remember CW is only circa 0.85p per share. You really think OTM is worth more?

    I would sell OTM and buy CW

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    1. Hillofwad71

      Smile Please

       

      Hope you didn’t as CW  have touched a new low today of 79.87 p  Could be  a bargain at that level if you ignore the  debt!

       

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      1. smile please

        Yep another few pence off.

        Still feel free to pin the post to your page.

        I predict in 18 months time CW shares will be AT LEAST £3.20 and OTM shares will be BELOW £1.50

        – Never judge a market on a morning!

        There is great value in CW, they have made a lot of mistakes but they should be able to turn it around. Do not forget there lettings book, FS, Conveyancing, Surveyors, Oh and they still post a profit.

        I am guessing you are an ex-member of staff bombed out at manager level? – Little bitter still?
         
         
         
         

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        1. smile please

          Also add in that personally i would also look to buy Foxtons shares as massively under valued in my opinion. 

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          1. londoneye

            I understand that Countrywide has 1500 offices and has a Mkt Cap of £188.3m or £125,533 per office, Foxtons with 67 offices has a Mkt Cap of £200m or £2,985,074 per office.

            Whether they are undervalued or not is debatable, few estate agents are worth nearly £3m per office IMO.

            Countrywide does on the face of it look somewhat under valued again IMO.

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      2. Hillofwad71

        Smile Please

        CWD

        Forget this morning maybe you have missed the trend here over the last  3 years from 600p down

        .Perhaps you are unfamiliar with the  story of DTZ and the  consequences of buying disappearing  turnover with debt and how that unravelled  for the private investor .You labour   under a grave misunderstanding   of how corporate  finance works  if you think the debt   “manageable” as they can make the  interest payments   is sufficent  to get the monkey off their  back for the debt burden of£193m you are sadly mistaken .This is  irrespective of the talented individuals there

         

        They  want to see  a clear way forward   with milestone payments  not a debt plan going further over the  horizon

        Belvoir have  expanded sensibly without incurring burdensome debt  and have increased turnover  profitably -also introducing new individuals acquired to the BODS

        I would stick to  dropping canvassing leaflets through doors and hope that  sledging the opposition produce some extra instructions rather than make  wild share predictions

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        1. smile please

          Believe me i know how corporate financing works and how share price is dictated.

          Why do you think they have abandoned the online roll out, got rid of all management staff … The reason is to implement their plan with a board that is not tainted.

          Lets pick this thread up in 18 months and see how close i am.

          Care to make a prediction yourself or are you just keen at pointing out irrelevant info?

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          1. Hillofwad71

            I don’t think CWD will be in the same form in 18 months time . LSH have been seeking to untie  the umbilical  cord but are needed as a cash cow Brandes and Oaktree hold 42% of the shareholding so they will have a big say in the future

            It wasn’t the rollout strategy which created the problem of the accumulated debt but buying practices  for silly money where no  value has been added Its  the  elephant in the room and certainly in a challenging market unlikely to make many inroads  to reduce unless a discounted placing on offer

             

            Certainly in 18 months time the value of CWD will not be a 1 billion  which you are suggesting which is  total pie in the sky

             

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  2. Philosopher2467

    If OTM was a boxing match; it would have been stopped by now. A clear ‘money making’ exercise that will leave the subscribing agent even poorer and the investors also, although I have zero sympathy for them.

    When will agents get together to create their own portal as a true mutual exercise and stop being expoloited to lesser and greater degrees by Rightmove (exploiter par excellence!) ZPG and now OTM? They use your (subscribers) hard won and expensively gathered instructions to garner their business and you get to pay for the priveledge at both ends!!! Then what do they do? put the price up every year!!!

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    1. smile please

      The best thing OTM has highlighted is there maybe a lot of good agents out there but many are not fit to run a business.

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  3. smile please

    WOW somebody is a bit twitchy, just sold 50,000 shares.

    Only on second day of trading? – must not have faith in it.

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  4. GPL

    As a documentated Day 1 Gold Member – documented Leaverfor well publicised reasons… I was about to comment as follows, until I checked the current AIM Share Price for OTM

    “For those OTM Remainers I would have thought now is the time to show your faith in the OTM V2 which you have chosen to support. Surely investing further in OTM V2 not only demonstrates your own faith it shows others that the current membership believes in the future of the OTM V2 Portal”

    …..however I now witness £1.40 per share this morning and the staggeringly silent PR Launch of OTM V2.

    What is the motive for the inept “V2 re-Launch” ….. is it to let the share price dive and bait someone to launch a bid …..that lost multi million share bonus for some is still a low millions possibilty or do unseen others pile in at some stage at pick up cheap shares!?

    Who knows? …clearly the current subscribers don’t, whether Leavers or Remainers.

    I just wonder at what point do Mr Springett & Co zip up their trousers and stop p*ss*ng on the people who pay their wages and prop up their bonus pots.

    In my Pay Monthly for P*ss All Opinion…. It’s a Disgrace! It’s Embarrassing! It’s a Shameful display of either ineptitide or planned partial self-destruction for whatever motives one can hazard a guess?

    If anyone actually knows what is going on at OTM V2 then do let us now… if it’s not too much trouble to ask!

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    1. smile please

      I don’t know why you still pay it GPL, surely this is not what you signed up for?

      Walk away.

      1. It has outside investment which stated it would not

      2. Is a “For Profits” business said it was not.

      3. Some agents can list on as many portals as they like others are not allowed to.

      4. Have you ever seen a rep unless they want something?

      5. Some agents paying as little as £50 pm

      6. Share price was not what was promised.

      7. No promotion has been done for the portal, despite promises after the legal battle they would.

      8. Some agent are not even paying there fees and have got away with it.

       

      If this was an individual that had done the above without the cover of a “Business” they would be labeled a con artist.

       

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      1. Thomas Flowers

        Time the board sacked Springate for gross incompetence and misleading former members without any shares or pay off?

         

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        1. harry hood

          You just couldn’t make this stuff up. Just can’t even imagine the stuff he’s got up to without us knowing…

           

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      2. basher52

        Re point 5 on your list – i hear it might be less than that!

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  5. simpletruth47

    Reckon this one will go to zero inside a year (being generous)

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