The Agency has released its operational and financial results for the March quarter, reporting solid growth in the first three months of 2021.
Gross commission income (GCI) for the period was $20 million – the second-highest quarter for GCI on record for the company.
For the month of March, GCI eclipsed previous records with $9.3 million reported across the combined group.
GCI for the quarter was based on sales valued at $1.153 billion Unaudited Earnings Before Interest, Tax, Depreciation and Amortisation (UBITDA) for the March Quarter was $554,000.
This was impacted by the seasonally quiet months of January and February, as well as abnormal costs associated with the company’s defence of various actions brought by entities associated with former Director Mitchell Atkins.
GCI of $9.3 million in March, contributing to $807,000 EBITDA for the month, demonstrates the inflection point of scale on profitability, The Agency noted in their statement.
As at March 31, The Agency had 300 sales agents, in line with the previous period and 3606 properties under management (up from 3576 previous quarter).
The March quarter result follows The Agency’s maiden profit result and record earnings in the six months to December, as well a busy start to 2021.
In addition to expanding into Queensland and the commercial property sector this year, last month the company announced the appointment of Group CEO Geoff Lucas.
The Agency Group’s Managing Director Paulo Niardone said the March quarter results reflected the continuing growth of the company and the rebounding property market.
“Results for month of March were particularly encouraging, with a record revenue of $6.4 million and $9.3 million of GCI,” Mr Niardone said.
“We also welcomed highly experienced industry executive Geoff Lucas as Group CEO during the period – a significant validation of all we have achieved at The Agency Group and our future plans.
“With a strengthened balance sheet and improving financial performance, we will continue to work on delivering the best service to clients and customers nationally with a focus on maximising value to our shareholders.”
Further highlights for the quarter included:
• Combined group revenue of $15 million – up 39 per cent from $10.8 million revenue in previous corresponding period (PCP), with a record $6.4 million revenue for March.
• 1232 sales valued at $1.2 billion (compared to 801 sales valued at $748 million in PCP) and 1299 listings (compared to 1001 listings in PCP).
• Macquarie Bank reduction of interest rate margin from 8.5 per cent p.a. to 4.75 per cent.
• Cash and cash equivalents at March 31, 2021 of $4.6 million.
• $11 million long-term funding package overwhelmingly approved by shareholders