Monday 3rd October 2011, 7am
In-Deed Online plc Pre Close Statement
In-Deed Online plc, a recently launched online service providing access to residential conveyancing, today announces its pre-close statement for the half year ended 30 September 2011.
While conditions in the UK housing market remain extremely challenging with volumes running at less than 50% of historic norms, we are pleased with the progress made since the launch of the website and our panel of lawyers in June 2011.
Website usage by buyers and sellers of residential property on the www.in-deed.net website has and continues to, meet the board's expectations, over 50,000 unique users have visited the site since launch, with the current run rate at over 3,000 per week. Management is heavily focused on initiatives to improve conversion of website traffic to live instructions. This includes, but is not limited to, development of a telesales capability, with initial indications being encouraging.
In addition, the board is exploring various B2B opportunities that it believes may exist to work with estate agents, new home developers, mortgage brokers and providers. Such distribution would, of course, involve sharing our margin with the third party, but does have the potential, we believe, to contribute to our volume ambitions and expectations.
With or without a recovery in market transaction volumes in the short to medium term, the company is well positioned to substantially grow market share through its leading technology and I.T integration with members of the panel.
Our website was launched in the mid-summer with little fanfare, which makes the level of early traffic to be most encouraging. However, we are keen to build on that platform and have recently engaged M+C Saatchi to help build our brand and further increase our initial traffic and conversion rate.
The company is in a sound financial position with net cash balances of £4.1million as of August2011, and modest monthly running costs.
The Board expects to report half year results on 10 Nov 2011.
Harry Hill executive chairman of In-Deed commented:
"The board is satisfied with the group's performance since launch in June. From our strong financial position we are well placed to grow market share and build the brand's reputation in an established sector where the overwhelming majority of our competitors are grossly undercapitalised."
In-Deed Online plc
Peter Gordon/Cottie Petrie Norris
Tel: +44 (0) 20 7401 9559
Numis Securities Limited
Stuart Skinner/Andrew Holloway (Nominated Advisor)
David Poutney/James Serjeant (Broker)
Tel: +44 (0) 020 7260 1000
Third City (Financial PR)
Mark Lowe/Graz Belli
+44 (0) 20 3174 1023