The Agency has confirmed a record financial year, announcing revenue increased 39.36 per cent in 2020/21 to $58.38 million.
Releasing their results earlier today, the company noted the increase in revenue was primarily due to a 68 per cent increase year-on-year in Combined Gross Commission Income to $80.7 million.
“This figure was bolstered by 4964 sales (up from 3147 sales for FY2020) and $4.8 billion worth of property sold across the combined group for FY2021 (FY2020: $2.9 billion),” they reported.
“Pleasingly, the 57.7 per cent year-on-year increase in The Agency’s transaction numbers was considerably more than the 40.7 per cent market growth for the same period.”
As at 30 June 2021, The Agency boasted 308 sales agents, with average Gross Commission Income (GCI) by agent increasing by over 57 per cent over the past 12 months.
“The Agency’s model of allowing our high-quality agents to focus on sales and providing support is being demonstrated by the year-on-year increase in GCI,” The Agency said.
“The Agency will be looking to boost agent numbers in the coming quarters. Based on the company’s existing platform and cost structure, which is largely fixed, any future recruitment will directly contribute to EBITDA performance.”
The Agency Group reported cash receipts of $71.57 million for the 2021 financial year, a 68.29 per cent year-on-year increase compared to $42.53 million in the previous period.
In late July, The Agency indicated they predicted a record financial year, but earnings before tax, depreciation and amortisation have exceeded their expectations.
On July 29 they predicted EBITDA in excess of $4 million with today’s final results indicating it was actually $6.37 million.
“After adjusting for AASB 16 Leases impact, positive EBITDA for the year was $4.57 million which compares to positive EBITDA of $0.71 million for the previous financial year and equates to a $3.86 million improvement,” The Agency noted.
The net assets of the group have also increased by $2.53 million to $14.14 million as at 30 June, 2021.
The group incurred a net loss after tax for the year of $1.86 million compared to a $9.07 million loss in the previous financial year, with the company noting that was primarily due to the embedded derivative non-cash financing cost ($2.24 million), interest and finance costs ($2.01 million), and depreciation and amortisation ($5.47 million).
As at 30 June 2021, the Group’s cash and cash equivalents increased to $5.10 million, compared to $2.72 million in 2020.