OnTheMarket cuts revenue guidance as Brexit woes dent transactions volumes

Online property portal operator OnTheMarket cut revenue guidance on Thursday as it said a Brexit-fuelled "wait-and-see" approach by buyers and sellers was denting transaction volumes.

Lower-than-expected transaction volumes and lower lettings led the company to cut revenue guidance to £18m-18.5m for the year ending 31 January 2020 and £27m-29m for the year to January 2021 - a growth rate of 27% to 31% compared with revenues for the previous year.

OnTheMarket said it now expects to post an underlying loss for the current financial year of £9m-10m, a small improvement over its previous guidance, but the group's target of finally turning in a profit was pushed out another year to January 2022.

Notwithstanding the lower revenues in the short-term, the AIM-listed company said it was continuing to expand its team in order to support growth in revenues.

"With net cash currently in excess of £8.5m and the group's increasing recurring revenue base, disciplined financial approach and strong cost control, OnTheMarket believes it has the necessary funds and resources to implement its strategy and achieve the strong growth projected over the medium term for the benefit of all stakeholders," it said.

As of 1005 BST, OnTheMarket shares had slumped 12.95% to 84.44p.