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All financial conditions met: The Agency’s shares lift

Shares in The Agency have resumed trading on the Australian Securities Exchange after the ASX yesterday confirmed the company had met all requirements relating to its financial condition.

As of the close of trading last night, the company’s share price had lifted .1c to 5.5c a share.

The news follows a series of recent announcements relating to The Agency’s financial situation including strong half year results and a new funding package involving Peter’s Investments.

On January 22, the group announced record quarterly revenue, positive cashflow, and a growing sales pipeline into 2021.

Their half year results included:

  • Unaudited EBITDA of A$1.6 million for HY21, $883k for the December quarter (excluding any Government incentives)
  • Positive operational cash flow of $1.5 million for HY21
  • Combined total group revenue of $29 million for HY21, up 15 per cent on the previous corresponding period ($25.2 million in HY20)
  • Record quarterly combined GCI (gross commission income) of $21.5 million for December quarter, $38.1 million for HY21
  • Strong growth across key operating metrics (recruitment numbers, properties sold, value of properties sold)
  • Strong sales pipeline with 1209 listings for the December quarter
  • Receipts from customers of $34.6 million for HY21 and $19 million for December quarter
  • Cash and cash equivalents at 31 December, 2020 of $5.5 million
  • Rent roll and mortgage book trail has an estimated market value of $27 million

Following the release of their half-year financial results, The Agency also finalised a new funding package that consisted of:

  • $5 million in Convertible Notes issued to private investment company Peters Investments Pty Ltd”), the private investment vehicle of Mr Bob Peters (taking total value of Convertible Notes held to $6 million).
  • An extended $5 million Macquarie Bank Limited primary secured debt facility.

The Company applied $3.715 million of the funds received for the issue of the Convertible Notes towards reducing its finance facility with Macquarie Bank Limited to $5 million.

In Addition, the Company repaid a loan of $0.75 million provided by Kalonda Pty Ltd as trustee for the Leibowitz Superannuation Fund.

On January 28, Peters Investments Pty Ltd exercised 14 million Options and converted $3.121 million worth of Convertible Notes (and associated interest) to equity.

The exercise of Options saw $391,656 cash received by The Agency, while Peters Investments Pty Ltd now holds a 30.24 per cent  interest in The Agency Group.

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