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- The Agency (AU1) builds on its success from the previous two quarters as it rides a growing market to new highs
- Unaudited earnings before interest, taxes, depreciation, and amortisation (EBITDA) are expected to exceed $4 million for the fiscal year ending June 2021
- The year’s gross commission income of $80.7 million is up 68.5 per cent over the previous year’s $47.9 million, with exchanges up 57.74 per cent to 4,964
- For the June quarter, the Agency generated $1.47 million in positive operating cash flow and $16 million in combined group revenue
- The Agency Group share price is up 26.9 per cent with shares trading at 6.6 cents at 11:00 am AEST
The Agency (AU1) has further consolidated on the success of the previous two quarters as it rides a booming market to record numbers.
For the full year ending June 2021, unaudited earnings before interest, tax, depreciation, and amortization (EBITDA) is anticipated to surpass $4 million.
The year’s gross commission income (GCI) of $80.7 million is up 68.5 per cent over the previous year’s $47.9 million, with exchanges up 57.74 per cent to 4,964.
Its gross sales value increased by 64.6 per cent to $4.84 billion, up from $2.94 billion the previous year.
The Agency Group’s managing director Paul Niardone said there has been robust growth in the number of transactions across the Australian market this year.
“It is pleasing to have delivered a 57.7 per cent increase in our transaction numbers, well more than the 40.7 per cent market growth,” he said.
The Agency has a total of 308 real estate agents as of June 30th, up from 283 at the end of June 2020.
At the end of June 2021, there were 3517 properties under management.
“During the June Quarter we further strengthened our business nationally, achieving a 74 per cent increase in revenue on the back of $22.7 million CGI,” Mr Niardone said.
“For the full year, GCI was $80.7 million, a 68.5 per cent increase on FY20 of $47.9 million, resulting in an expected unaudited EBITDA for FY21 (pre AASB16) exceeding $4 million, a 570 per cent increase on FY20 of $0.7 million (pre AASB16).
“These results confirm the company is maintaining strong growth and has achieved sufficient scale so that further revenue increases will contribute to increasing margin and profitability.
“In what has been a robust real estate market generally, it is also pleasing that our transactional numbers have also significantly outperformed the market. I look forward to providing a strong set of full year FY21 results in the coming month.”
For the June quarter, the Agency generated $1.47 million in positive operating cash flow and $16 million in combined group revenue.
The group recorded $21.17 million in client receipts for the quarter, a substantial increase of 21 per cent over the previous quarter’s $17.53 million.
Operating cash flows for the quarter totalled $1.47 million, this includes a sum of $157,000 for legal fees associated with the court action with Magnolia Capital
The rise in personnel expenses from $3.4 million in the March quarter to $4 million in the June quarter is related to both payment timing and a reduction in JobKeeper payment assistance, the company said.
Shares in The Agency Group are is up 26.9 per cent with shares trading at 6.6 cents at 11:00 am AEST.
