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Showing it’s well and truly shaken off its Magnolia-related woes, The Agency Group has shared its latest financial figures for the June quarter in a statement to the ASX.
Ahead of its full-year FY21 report’s release — to be expected in the coming month — The Agency Group’s managing director, Paul Niardone, said “despite the continuing challenges brought on by COVID-19 nationally, our business model continues to be validated by our results, both operational and financial”.
Among the highlights for the network, transaction volumes are up by 57.7 per cent on the previous year, to 4,964.
Overall, the group has reported that the gross value of these exchanges was $4.84 billion — a 64.6 per cent increases on FY20, when $2.94 billion worth of property was transacted by the group.
Combined group revenue and combined gross commission income (GCI) have also seen massive boosts when compared to the same quarter last year.
The Agency Group is reporting combined group revenue of $16 million for the June quarter, which is 74 per cent higher than the June quarter in 2020, when the group reported $9.2 million.
GCI sat at $22.7 million for the June quarter of 2021 — up by 108 per cent on the same period in 2020, when GCI was $10.9 million.
The above figures lead the group’s expectation of an unaudited EBIDTA for FY21 that will exceed $4 million.
If achieved, this will be a 570 per cent increase on the previous year’s $0.7 million, as reported to shareholders.
Mr Niardone said the 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”.
“In what has been a robust real estate market generally, it is also pleasing that our transactional numbers have also significantly outperformed the market,” he added.
This is off the back of “robust growth in the number of transactions across the Australian market this year”, as flagged by the managing director.
He said: “It is pleasing to have delivered a 57.7 per cent increase in our transaction numbers, well more than the 40.7 per cent market growth.
“I look forward to providing a strong set of full-year FY21 results in the coming month.”
The statement also illustrated a growth in agent numbers — up to 308 sales agents from the 283 reported at the end of June 2020.
Cash and cash equivalents as at 30 June 2021 were also contained in the statement, standing at $5.7 million.
The release of the 2021 financial year report will likely be a celebratory milestone for the group, which garnered the buy-in of Peters Investments Pty Ltd in January 2021 and solidified its financial position.
It was a turbulent period as the group fended off a share buy-off from Magnolia Capital, which also attempted to place the group into administration — with both actions subsequently quashed.
The former shareholder of The Agency who spearheaded both the “takeover” and the group’s administration attempt, Mitchell Atkins, had expressed concerns around the group’s solvency.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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