Zoopla (ZPLA) only floated in June and the group has joined its rival Rightmove (RMV) as one of the major online property portals. Business has been brisk, too, which isn't surprising given the strong recovery in the housing market - indeed, website visitor numbers grew by a third to a record 514m.
Total member numbers - mainly estate agents - grew by 5 per cent to nearly 20,000 and average revenue per agent rose by 18 per cent to £312. That helped to boost adjusted cash profit by over a third to £39.6m. Strong cash generation also allowed payment of its first dividend as a quoted company.
Zoopla reckons its services are now used by 90 per cent of property professionals and it's already expanding into new business areas - such as commercial property - while the number of overseas agents more than doubled year-on-year to 575. Further revenue streams are also under development with a view to attracting income from conveyancing, mortgage providers and architects. That's important because Zoopla's core business model is inextricably linked to the housing market, where any downturn would hit customer numbers and advertising revenue. Nevertheless, Zoopla continued to support the rise in demand by increasing headcount. As a result, employee costs rose a third to £12.8m.
Broker Numis Securities expects pre-tax profit for 2015 of £47.8m, giving EPS of 9.1p.
| ZOOPLA PROPERTY (ZPLA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 189p | MARKET VALUE: | £790m | |
| TOUCH: | 189-190p | 12-MONTH HIGH: | 275p | LOW: 189p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 37 | |
| NET ASSET VALUE: | 23p* | NET CASH: | £31m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 64.5 | 28.3 | 5.4 | nil |
| 2014 | 80.2 | 28.7 | 5.1 | 1.1 |
| % change | +24 | +1 | -6 | - |
Ex-div: 4 Dec Payment: 23 Feb *Includes intangible assets of £75m, or 18p a share | ||||
