OnTheMarket (OTM) has revealed that it has been paid a further £1.1 million in respect of legal costs by estate agency Gascoigne Halman after winning its competition court case with the firm in July 2017 and then a subsequent appeal decision this January.
OTM continues to pursue damages, and says that “the residual non-competition issues relating to our claim remain to be resolved and are now focused on the recovery of financial damages by the Group due to Gascoigne Halman’s breaches of contract”.
The details of the costs settlement are within OTM’s latest results which show increased revenue but a significant increase in operating losses. Group revenue increased by 14% to £8 million but operating losses increased from £5.7 million to £7.2 million year-on-year.
The results also show how fast it is burning through its ‘war chest’ raised via its public IPO last year; £8 million of the £50 million raised remains in the bank, down from £15 million in January.
OTM also reveals that the average income it earns from each agent listing on its platform has dropped from £130 a month to £108, which it attributes to more agents being brought on board via short-term ‘freebies’.
The number of agents on its platform has increased dramatically over the past year from 7,788 to 12,434 and, since it began a recent conversion programme to move ‘freebie’ listing agents to paying contracts, a further 2,346 branches are now paying to use its service at an average of £288 a month.
Agents who signed up to longer contracts and received shares are paying £331 a month.
The results follow news earlier this week that OTM had launched a new product called Market Appraisal Guide, its version of Rightmove’s ‘Best Price Guide’.
“The continued strong growth in the operational performance of the OnTheMarket.com portal provides encouragement for the future,” says CEO Ian Springett (left).
“We have delivered another set of record-breaking traffic and leads results for our estate and letting agent shareholders and customers.”