Online real estate group Onthehouse Holdings Ltd (ASX: OTH) has provided a company and trading update today, giving an early indication of its half-year results as well as developments in relation to its Board composition and management.
The Board
The company is engaged in a renewal process whereby a number of changes will be made to the board, including that of the current Chairman. Ms Gail Pemberton has indicated her intentions to resign from the role and the board has proposed to appoint Mr Tony Scotton as her replacement as of 27 February 2015.
As stated by the company, Scotton has extensive experience as a CEO and Director of ASX-listed companies and the board believes he is an ideal fit for the role.
The company also said that three new directors joined the board in October 2014, representing a group of substantial shareholders. While the board will also maintain an element of independence, the involvement of substantial stakeholders bodes well for investors in that their intentions are clearly aligned with the rest of the market.
In wake of the changes, Mr Scotton will step down from his current role as interim CEO and Mr Chris Meehan, the group's current Chief Operating Officer, will be appointed as Acting CEO.
Trading Update
Onthehouse has enormous growth potential in the online real estate space, provided that it can gain market share from its two major online rivals, which are operated by REA Group Limited (ASX: REA) and Fairfax Media Limited (ASX: FXJ). As such, the business has been reinvesting in itself to support future growth which will impact earnings in the medium term.
While Onthehouse won't release its first half results until 26 February, it said it expects revenue of $13 million (compared to $12.9 million in the first half of 2014) as well as underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.1 million, down from $3.2 million in the prior corresponding period.
