- Real estate company, The Agency Group (AU1) has delivered a $18.6 million revenue growth for the period as ended on November 30
- This represents a stellar 22 per cent year-on-year increase
- Additionally, The Agency’s cost savings initiative continues to take effect with expenses of over $8 million – or a 16 per cent cost reduction
- As for its property business, The Agency sold a combined $311.6 million worth of property
- Company shares are up 10.3 per cent and trading for 6.4 cents each
Real estate company, The Agency Group (AU1) has reported revenue growth and cost savings for the year to date financial year 2020 as ended on November 30.
The combined group delivered revenue in this period of $18.6 million. This figure represents a stellar 22 per cent year-on-year increase (YTD November FY19: $15.3 million).
Additionally, The Agency’s cost savings initiative continues to take effect with expenses of $8.4 million, a 16 per cent year-on-year reduction (YTD November FY19: $10 million).
“Once again, our monthly results further highlight the continuing success of our model and the quality of agents we have within our business,” Managing Director Paul Niardone said.
In September, the company announced a forward plan to cut about $2.8 million in costs following a net loss before income tax of $7.7 million.
Total Gross Commission Income (GCI) for November came in at $5.04 million, the second consecutive month of over $5 million GCI.
Importantly, GCI for the first two months of this quarter of $10.4 million already represents 97 per cent of the total record GCI from the September quarter of $10.7 million.
As for its property business, The Agency sold a combined $311.6 million worth of property. The company remains confident in future sales following 385 listings and 254 settlements in November 2019.
A significant source of strength is the properties under management (PuM). The Agency’s east and west coast operations have reported a total management portfolio of 4,644 PuM as at November 30 2019.
“2019 finished strong with auction clearance rates on the east coast remaining above 70% consistently in the last quarter,” CEO Matt Lahoo said.
“Coupled with market improvements in the key markets of Sydney and Melbourne as well as an upturn in Perth in November for the first time in 18 months, 2020 looks set to be a milestone year for our company,” Paul concluded.
The Agency Group is up 10.3 per cent with shares trading for 6.4 cents each at 2:27 pm AEDT.