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In a company first, The Agency Group has delivered three quarters of positive EBITDA and positive cash flow.
In announcements to the ASX on 27 August 2021, The Agency Group revealed its preliminary final report for the 2021 financial year and the investor presentation it provided to shareholders of those results.
Within those documents, it has reported achieving annual group revenue of $58.38 million — an almost 40 per cent increase year on year.
For the 2020 financial year, the group had reported revenue of $41.86 million.
According to the company, “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”.
It also reported EBITDA of $4.6 million — a 544 per cent improvement on the previous year’s $0.7 million.
Growth compared to the wider market was another highlight for the group, reporting 4,964 sales over the past 12 months, and bettering the 3,147 sales achieved by the network’s agents in FY20.
Highlighting that as a 57.7 per cent boost on sales compared to the previous year, The Agency also pointed out that its own transaction numbers boost was “significantly above” the 40.7 per cent market growth reported by the marketplace more broadly.
Based on all of the above, The Agency told shareholders that the business’s balance sheet illustrates the business as in a strong financial position.
On an individual agent level, the group noted it was comprised of a combined 308 sales agents as at 30 June 2021 — 163 on the East Coast and 145 on the West Coast.
Unsurprisingly, based on the boosted revenue for the 2021 financial year, average gross commission income (GCI) for each agent also increased — by more than 57 per cent over the 12-month period.
According to the group, this is a reflection on its business model “allowing our high-quality agents to focus on sales and providing support”.
Looking ahead
“Now that our business model has achieved a profitable scale, focus shifts to quality agent recruitment for driving growth,” the group said.
Shareholders were informed that The Agency is looking to boost agent numbers in the coming quarters, with revenue from that recruitment expected to directly contribute to EBITDA performance based on The Agency’s existing platform and cost structure — which it noted as “largely fixed”.
Executives have also reported a strong pipeline of listings into FY22 on the back of a rebounding property market post-COVID-19 and the events of 2020.
The Agency had previously hinted at its strong financial year standing, when it provided an update of its June quarter results at the end of July.
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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