Join our daily newsletter At The Bell to receive exclusive market insights
- The Agency Group (AU1) has entered a trading halt ahead of new financing agreements and a potential capital raise
- The group is an Australia-based company that provides a range of financial and real estate services
- The trading halt followed a positive FY20 annual report, which outlined a 48 per cent increase in revenue to $41.86 million
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) also significantly increased by a staggering 116 per cent
- The group did, however, incur a net loss before tax for the year of $10.36 million compared to a loss of $9.26 million in FY19
- Looking ahead, The Agency claims it’s actively pursuing strategic partnerships and joint venture opportunities to drive agent recruitment and sales revenue
- Potentially aligning with the ‘new financing agreements in question’ AU1 is also finalising arrangements to bring bank debt down to a ‘manageable level’
- Company shares last traded for 3.5 cents on September 28
The Agency Group (AU1) has entered a trading halt ahead of new financing agreements and a potential capital raise.
The company will remain in a trading halt until the earlier commencement of trading on Monday, October 5, unless details of the capital raise and agreements are announced earlier.
The Agency Group provides financial and real estate services including sales and property management, investment property strategies and settlements, and various financial planning services.
This morning, AU1 announced a 48 per cent increase in year-on-year revenue for the 2020 financial year. Revenue for the year came in at $41.86 million compared to $28.3 million in FY19. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also significantly increased by a staggering 161 per cent from a loss of $4.25 million in FY19 to a positive $2.66 million in FY20.
The group did incur a net loss before tax for the year of $10.36 million compared to a loss of $9.26 million in FY19. This is primarily due to interest and finance costs, depreciation and amortisation and impaired goodwill during COVID-19.
At the end of Fy20, AU1 has $2.72 million in cash and equivalents, compared to $2.59 million in the prior corresponding period.
Looking ahead, The Agency claims it’s actively pursuing strategic partnerships and joint venture opportunities to drive agent recruitment and sales revenue.
The company is also focused on finalising arrangements to bring bank debt down to a ‘manageable level’. This may represent the new financing agreements as part of the trading halt.
Company shares last traded for 3.5 cents on September 28.
