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OnTheMarket seeks shareholder vote for dividend payment change

Portal is to ask permission from shareholders for the approx £10m it holds as 'cash in hand' to be used to pay member agents their dividends, if deemed necessary.

Nigel Lewis

image of town hall meeting

OnTheMarket is to ask its shareholders to vote for a significant change of financial direction that could see some of its approximately £10 million in capital released to pay for future dividend payments to its shareholders, if deemed necessary.

The company’s capital risk management statement within its most recent annual report suggests that the move is to ensure it can continue to pay the ‘regular and increasing returns to its shareholders’, 60% of whom are its member agents.

It says: “The Group manages its capital to ensure its obligations are adequately provided for, while maximising the return to shareholders through the effective management of its resources.

“The Group’s objective when managing capital is to safeguard its ability to continue as a going concern [and meet] its objective by aiming to achieve growth which will generate regular and increasing returns to its shareholders.”

Agents investing

Link to Proptech NewsJason Tebb, its CEO, adds: “In 2014 agents began investing with loan notes and pre-subscription fees to build their own portal in order to share the rewards of its future success.

“Over the last few years, we’ve seen OnTheMarket go from strength to strength with the launch of our new website, new valuation driving products and new commercial partnerships.

“We’re now exploring the next steps required to build on this momentum and realise those rewards for our shareholders.”

“We remain committed to the provision of a proposition differentiated by agent ownership, and this is another major step on that journey.”

“We’re continuing to evolve the business to support our long-term aim of increasing the value we offer our customers, in line with our strategy of building a differentiated, technology-enabled property business. We remain committed to keeping our listing fees fair and sustainable, whilst working to create value which, as owners, our shareholder agents can share in.”

OTM raised approximately £50m from a public offering on AIM in 2017 but made a trading loss each year until the 12 months to January 2021, when it made a profit of £2.4 million.

May 3, 2022

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