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Posting revenue of $72.7 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.85 million, the national real estate company has revealed its financial results for financial year 2022.
In an announcement to the ASX, The Agency said it had delivered “another year of strong increases in operating and financial results for FY22, as it continues to grow market presence nationally”.
Now across six states and territories, the company also posted that the gross value of properties sold was $5.9 billion over the 12 months to June 2022 — a 23 per cent boost to its FY21 figure of $4.8 billion.
That came off the back of 5,709 property transactions, which was a 15 per cent lift on the 4,964 it reported just one year earlier — and led to a 27 per cent lift in total gross commission income (GCI) to $102.5 million being achieved.
The group has also boosted its agent numbers — having grown to a total of 393 agents from a previous total of 308.
Alongside the company’s growth, it also touted its achievement of further economies of scale over the 12-month period, reporting that the “cost of doing business ratio” declined to 30.3 per cent of revenue — down from 34.7 per cent in FY21.
Managing director and group chief executive Geoff Lucas said the group was “pleased” by both the results and the outlook for shareholders.
He stated: “Expanding our geographic reach, increasing agent numbers, growing our local market presence at a lower cost of doing business are our strategic growth levers that are delivering a solid platform for execution of our future objectives.”
Looking forward, the managing director said the business “is well positioned” to continue growing its market share — stating that its GCI uplift to $102.5 million “is just a fraction of the $7.6 billion total annual Australian residential real estate commissions pool”.
He asserted that “there still remains significant market share potential ahead for The Agency”.
“From our assessment, we’ve calculated that we sold a property in around 34 per cent of the addressable market in the last 12 months.
“This shows the potential reach of our current infrastructure but also highlights that we have many further markets to tap into as we grow our national market share,” he commented.
“Our strategy is to build depth in these existing markets as well as grow into additional markets.”
That sentiment stands in spite of The Agency’s prediction that price movements over the coming months will enter into the negative range — from negative 4 to 8 per cent.
Mr Lucas said such market conditions would work to their advantage, citing their direct engagement model as an attraction point for agent recruitment and retention.
“As the market tightens, we expect vendors to look to experienced agents who have a track record in changing market conditions,” he expressed.
“We are confident that these market conditions will work to our advantage, not only to help to attract new agents to our business and grow our agent numbers, but also help many of our existing agents gain market share at their local suburb level.”
Key highlights from the announcement include:
- Revenue of $72.7 million (up 24 per cent)
- Underlying EBITDA of $3.85 million (up 26 per cent)
- GCI $102.5 million (up 27 per cent)
- Cash and cash equivalents of $8.2 million (up from FY21’s $5.1 million)
- Operational cash flows of $4.6 million (Pre AASB16 leasing adjustment)
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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