Analysts: The future finance predictions for OnTheMarket plc

OnTheMarket plc to possibly break even in the near future, report shows

OnTheMarket plc provides property search services for buyers, sellers, landlords, and tenants in the United Kingdom. The UK£62 million market-cap posted a loss in its most recent financial year of -£14.5 million and a latest trailing-twelve-month loss of -£14.5 million shrinking the gap between loss and breakeven.

The most pressing concern for investors is OTMP’s path to profitability – when will it break even? This will touch on the expectations for OTMP’s growth and when analysts expect the company to become profitable.

According to the 3 industry analysts covering OTMP, the consensus is break even is near. They expect the company to post a final loss in 2020, before turning a profit of £12 million in 2021. OTMP is therefore projected to break even around 2 years from now.

How fast will OTMP have to grow each year in order to reach the break even point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 91% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

This article will not going to go through company-specific developments for OTMP given that this is a high-level summary, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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