The Agency announces half-year profit and record earnings

The Agency has released its half-year financial results, chalking up a maiden profit and record earnings for the six months to December 20.

In a presentation to shareholders on February 26, the company detailed its turnaround, reporting their first profit from ordinary activities after tax of $832,979 for the six-month period compared to a loss of $1.7 million in the same period the year prior.

In addition, the group also reported record earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.76 million and revenue of $29.4 million.

Further highlights of the half-year financial results included:

  • Operational cashflow of $2.57 million, (up from $1.46 million in the half year 2020)
  • Revenue from ordinary activities of $29.4 million (up from $22.1 million in the half year 2020)
  • Gross Commission Income of $38.1 million (up from $24.9 million in the half year 2020)
  • $2.2 billion value of exchanges (up from $1.5 billion in the half year 2020)
  • 2449 new listings (compared to 1995 in the half year 2020)
  • a 51 per cent increase in number of sales
  • a 33 per cent increase in revenue
  • a 10 per cent decrease in operating expenses as percentage of revenue for the half year

The most recent financial results come after a big year for The Agency, in which the group secured a new two-year debt facility with the Macquarie Bank, valued at $5 million, 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.

Meanwhile, on February 11 shares in The Agency resumed trading on the Australian Securities Exchange and immediately lifted in value after the ASX confirmed the company had met all requirements relating to its financial condition.

Now, the group is reporting their net assets have enjoyed 34 per cent growth after the refinancing and conversion of convertible notes.

Attention has also turned to the future, with Managing Director Paul Niardone stating: “The Group remains focussed on maintaining a sustainable financial framework and continues to identify and implement efficiencies into its business”.

“The Agency is active in pursuing new business channels and entering new markets, along with new strategic partnerships and JV (joint venture) opportunities it believes will drive agent recruitment and sales revenue in the coming reporting periods,” he commented in the interim financial report.

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Cassandra Charlesworth

Cassandra Charlesworth is a features writer for Elite Agent Magazine with over 15 years’ journalism experience in metropolitan and regional newsrooms. She has a specialist interest in real estate, tech disruption and a good old-fashioned “yarn”.