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The Agency records robust financial results

The Agency has revealed improved financial and operational results for the first half of the 2021-22 financial year as it continues to grow across five states and territories.

In a statement to the Australian Securities Exchange (ASX), the group revealed its total revenue between July and December 2021 (HY22) hit $35.8 million, which was a 23 per cent increase on the first half of the 2020-21 (HY21) financial year.

The number of properties sold increased 21 per cent, from 2470 in HY21 to 2910 in HY22, while Gross Commission Income reached $52.9 million.

That was a 39 per cent increase on the $38.1 million GCI recorded in the first half of the 2020-21 financial year.

The value of properties sold also jumped significantly, up 41 per cent from $2.2 billion in HY21 to $3.1 billion in HY22.

Commenting on the results, The Agency Group’s outgoing managing director Paul Niardone said the HY22 and December Quarter results continued to “vindicate The Agency business model, especially amidst the ongoing volatility brought on by COVID-19 nationally”.

“While it has been an extremely busy half year, we have remained focused on growth and quality results and have developed a strong pipeline into calendar year 2022.”

The Agency also recorded positive, operational cashflow of $2.5 million for HY22 and $1.2 million for the December quarter alone.

Receipts from customers totalled $44.9 million to HY22, including $24.4 million for the December quarter.

At December 31 the group’s cash and cash equivalents sat at $6.9 million.

“Cashflow continues to strengthen and a $6.9 million cash balance underpins our healthy balance sheet,” Mr Niardone said.

“This financial strength, coupled with award-winning excellence in essential services and support to our agents and customers, will enable us to deliver value to shareholders in the years ahead.”

In its activity report The Agency also revealed its total number of agents had increased 16 per cent, from 298 in HY21 to 345 for HY22.

The agents have also boosted listing figures 25 per cent, increasing from 2449 for HY21 to 3050 for HY22. 

“Importantly, since 31 December, The Agency has further accelerated its recruitment drive, adding four new agents in the ACT, seven new agents in NSW, seven new agents in QLD and four new agents in WA,” the report said.

In December, The Agency also announced existing Chief Executive Officer Geoff Lucas would become the Managing Director and CEO from 28 January.

“The appointment reflects the focus of The Agency on further growing its market share in Australian eastern states markets…,” the report said.

Mr Niardone, the company founder and outgoing managing director, has been appointed executive director and is focused on growing The Agency in Western Australia, as well as national growth of the emerging SLP business, the company’s financial services division and PropTech opportunities.

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Kylie Dulhunty

Kylie Dulhunty is the Deputy Editor at Elite Agent.