The Agency on track for record financial year results

The Agency’s planned growth trajectory is being realised, with the group’s results for the June quarter indicating the company is on track for a record 2020/21 financial year.

In a statement to the Australian Securities Exchange (ASX) today, The Agency indicated they are likely to post earnings before interest, taxes, depreciation, and amortisation (EBITDA) of more than $4 million for the 12-month period to 30 June.

It marks a 570 per cent increase on 2019/20, when the group posted an EBITDA of $0.7 million, and comes amidst a raft of improved results for the company.

A snapshot of The Agency’s June quarter results:

  • Unaudited EBITDA for the 2020/21 financial year is expected to exceed $4 million (a 570 per cent increase on the previous financial year results of $0.7 million)
  • Combined group revenue of $16 million for the June quarter (up 74 per cent on the $9.2 million reported in the June quarter of 2020)
  • Combined gross commission income (GCI) of $22.7 million for the June quarter (up 108 per cent on the June quarter in 2020 of $10.9 million)
  • GCI for financial year 2020/21 of $80.7 million (a 68.5 per cent increase on the 2019/20 financial year results of $47.9 million)
  • Total number of transactions for the 2020/21 financial year of 4964 (a 57.7 per cent increase on the year prior, compared to a market increase of 40.7 per cent)
  • A 64.6 per cent increase in the gross value of exchanges for the 2020/21 financial year, with $4.84 billion worth of exchanges conducted, compared to $2.94 billion in 2019/20.
  • Cash and cash equivalents at 30 June, 2021 of $5.75 million

“Despite the continuing challenges brought on by COVID-19 nationally, our business model continues to be validated by our results, both operational and financial,” The Agency Group’s Managing Director, Paul Niardone said.

“These results confirm the company is maintaining strong growth and has achieved sufficient scale so that further revenue increases will contribute to increasing margin and profitability.”   

Acknowledging the strong EBITDA was welcome but “unexpected” Mr Niardone noted the volume of transactions completed by the Agency during the 2020/21 financial year was also worth highlighting.

In total, the group conducted 4964 transactions, which was a 57 per cent increase on the year prior and above the average market increase of 40.7 per cent.

“In what has been a robust real estate market generally, it is also pleasing that our transactional numbers have significantly outperformed the market,” he remarked.

Meanwhile, the group has also experienced growth in both their agent numbers and property management divisions.

At the close of the financial year on June 30, The Agency had 308 sales agents nationally, compared to 283 the year prior, and 3517 properties under management.

The Agency’s most recent financial results continue a positive period for the company.

In March, the group announced their half-year results, chalking up a maiden profit and record earnings for the six months to December 20.

Now the group will be turning their attention to the full year financial results for 2020/21, which Mr Niardone foreshadowed would be “strong” and will be announced in the coming month.

As a result of the announcement of the June quarter results, shares in The Agency were trading 17.3 per cent higher at $0.61 at 1pm today.

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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”.