ZPG Plc
Annual Report Summary 2017

Empowering smarter property and household decisions

We are stronger and more diversified than ever before

"2017 has been another very exciting year for ZPG as we continued to help our consumers to make smarter property and household-related decisions and our partners to operate more effectively. The combination of our underlying organic growth and strategic acquisitions has made us stronger and more diversified than ever before, resulting in record revenues up 24% to £244.5 million and record Adjusted EBITDA up 25% to £96.4 million."
We are stronger and more diversified than ever before
Alex Chesterman OBE,
Founder & CEO
Download Chief Executive Officer’s statement and business review (800KB)

Another transformative year for ZPG

"The past year has been another transformative one for ZPG and, on behalf of the Board, I am pleased to present the Company’s results for the year ended 30 September 2017."
Another transformative year for ZPG
Mike Evans,
Chairman
Download Chairman's statement (459KB)

ZPG helps empower smarter property and household decisions

We operate a multi-brand, multi‑channel approach across the property lifecycle with an unrivalled product proposition providing us with unique cross-sell opportunities. Our websites and mobile apps attract over 50 million visits per month with a highly engaged audience and over 25,000 business partners engage with our services to reach this audience.

Zoopla is the UK’s most comprehensive
property website, helping consumers to
research the market and find their next
home by combining hundreds of thousands
of property listings with market data and
local information.

uSwitch is the UK’s leading comparison website for home services switching, helping consumers to find the best deal and save money on their gas, electricity, broadband, TV, phone and other products.

Money is one of the UK’s leading financial services comparison websites, helping consumers compare products including mortgages, loans, credit cards, bank accounts and insurance from more than 600 providers.

PrimeLocation is one of the UK’s leading property websites, helping house-hunters in the middle/upper tiers of the market find their dream home from the top estate agents, letting agents and property developers.

SmartNewHomes is the UK’s leading website dedicated exclusively to new homes, helping buyers understand the market and search for new build homes from all the leading property developers across the country.

Hometrack is a leading supplier of automated property valuations and property marketing sights in the UK and Australia to partners including mortgage lenders, developers, investors, housing associations and others.

TechnicWeb is the UK’s leading estate agency website design and hosting business specialising in designing and operating fully responsive websites for the property sector.

Ravensworth is the UK’s leading provider of print solutions to estate agents and offers a comprehensive range of products and services for every stage of the property marketing journey from listing through to post-sale.

Alto, Jupix and ExpertAgent are some of the leading cloud-based estate agency and property management software systems used by thousands of property professionals across the UK for the day-to-day management of inventory, marketing and communications.

PropertyFile and MoveIT are innovative tools used by estate agents to improve communication and efficiency with their customers and to allow them to generate additional revenue streams via referrals.

Key highlights for the year

Record performance and new milestones across the business.

Revenue1 £m
£244.5m +24%
  • 40%
    107.6 2015
  • 70%
    197.7 2016
  • 89%
    244.5 2017
Adjusted EBITDA1,3 £m
£96.4m +25%
  • 50%
    48.7 2015
  • 70%
    77.1 2016
  • 89%
    96.4 2017
Adjusted basic EPS2,3 p
15.2p +20%
  • 50%
    8.4 2015
  • 75%
    12.7 2016
  • 89%
    15.2 2017
Profit for the Year4 £m
£37.4m+2%
  • 60%
    25.4 2015
  • 89%
    36.7 2016
  • 89%
    37.4 2017
Basic EPS per share p
8.8p -1%
  • 60%
    6.2 2015
  • 89%
    8.9 2016
  • 89%
    8.8 2017
Dividend per share p
5.7p +10%
  • 50%
    3.5 2015
  • 84%
    5.2 2016
  • 89%
    5.7 2017

Business highlights

  • Revenue increase of 24% to £244.5 million and adjusted EBITDA increase of 25% to £96.4 million
  • Record traffic of 648 million visits to platform generating record of over 56 million partner leads
  • Materially enhanced revenue diversification and cross-sell opportunities resulting from acquisitions
  • New Zoopla MovePlanner tool generating over 10,000 leads per month for Comparison partners
  • Continued marketing investment in new national campaigns resulting in record brand awareness
  • Net debt‌5 increased to £191.5 million (FY16: £146.5 million) as result of further strategic acquisitions in year
  • Continued to be highly cash generative with strong cash conversion ratio‌6 over 88% (FY16: 81%)
  • Statutory Profit for the year was up 2% after acquisition related costs and share-based payments

Leading innovation across the industry

We operate a multi-brand, multi-channel strategy to cross-sell products across the property lifecycle. In order to deliver on our mission we focus on four key strategic objectives.

Leading innovation across the industry Download our Strategy (138KB)
ZPG
team
Consumer
experience
Partner
value
Shareholder
value

Best place for our teams

We attract, retain and develop the best talent by leading innovation across the industry, offering opportunities for ongoing learning and professional development together with market‑leading benefits.

Our strategic priorities
  • Create and promote development tools, frameworks and processes
  • Build the ZPG employer brand
  • Inclusive culture that focuses on growth, new opportunities and collaboration
Our performance in 2017
  • Hired a dedicated Employee Engagement Manager
  • Became an approved Institute of Leadership and Management centre
  • Launched various ZPG Committees including our new Eco Committee
Our focus for 2018
  • Offering award-winning benefits, growth opportunities and culture
  • Raising the profile of our employer brand

Most useful resource for consumers

We constantly improve our user journeys to empower consumers to make smarter property and household decisions.

Our strategic priorities
  • Grow our audience effectively across all channels
  • Innovate our products and consumer experiences
  • Increase engagement through cross-selling of services
Our performance in 2017
  • Launched innovative MovePlanner tool on Zoopla
  • Expanded switching services available via uSwitch accounts and launched reminders
  • Invested in and partnered with innovative start-ups Neos and Zero Deposit
Our focus for 2018
  • Create the most useful home related resources for consumers
  • Develop and enhance our home mover and home management tools

Most effective partner for the businesses we work with

We offer a one-stop shop for home related businesses. Our products and services help to market their inventory, manage their business and maximise their revenue opportunities.

Our strategic priorities
  • Encourage take-up of multiple products and services
  • Innovate tools and services for partners that enhance and support their business
  • Build stronger relationships underpinned with insight
Our performance in 2017
  • Acquisitions of TechnicWeb, Hometrack, ExpertAgent and Ravensworth significantly increasing our product offering for Property partners to include portal, so ware, websites, data and print
  • Enhanced revenue opportunities for partners via MoveIT with the launch of energy switching powered by uSwitch
  • Announced acquisition of Money, extending the reach of our Comparison partners’ brands
Our focus for 2018
  • Cross-sell more ZPG services to our Property partners
  • Increase the reach and marketing efficacy of our Comparison partners

Delivering value to our shareholders

Our multi-brand, multi-channel approach presents a unique opportunity to create integrated products in order to address consumer and partner needs throughout the entire property lifecycle.

Our strategic priorities
  • Use growth and increased scale to deliver operational leverage
  • Deliver cross-sell opportunities across ZPG through data and cross-division collaboration
  • Expand the portfolio via effective M&A
Our performance in 2017
  • Created dedicated cross-division working groups such as the mortgage team
  • Adopted new business intelligence and tracking tools across ZPG
  • Made good progress on integration of acquisitions
Our focus for 2018
  • Leverage ZPG data, traffic and assets
  • Expand uSwitch consumer accounts

ZPG Plc Annual Report Summary 2017

This is an interactive version of ZPG Plc's Annual Report 2017. The content herein should be read in conjunction with, and with reference to, the printed version, which is available to download here.