Where To Now For The Residential Property Market?

 

The Agency Group (ASX:AU1) is one of Australia’s fastest-growing integrated real estate service companies, with approximately 280 real estate agents. The company recently released their Preliminary Final Report for the full year ended 30 June 2020.

Highlights include:

• FY20 EBITDA2 of $2.66 million

• Pre-adoption of AASB 16 leasing standard, FY20 EBITDA of $711,714 – a $4.9 million turnaround from FY19 EBITDA loss of $4.25 million

• FY20 positive cashflow from operations of $334,704, compared to FY19 negative cashflow of $6.4 million

• Annual Group Revenue up 48% y-o-y to $41.86 million

• Cash receipts of $42.53 million, up 42% y-o-y from $30 million

• Continued growth across all key operating metrics (Gross Commission Income, Properties under Management, properties sold, listings, recruitment, home loan approvals)

• Strong sales pipeline – results flowing through to 1Q FY21

• Cash at end of financial year of $2.72 million (FY19: $2.6 million)

• COVID-19 highlights effectiveness of established remote ready cloud-based platform and model to the industry, which will drive recruiting efforts over following quarters

• Estimated market asset value of rent roll and loan book in excess of $27.0 million

• Actively pursuing strategic partnerships/JV opportunities to drive agent recruitment and sales revenue in the coming reporting periods

Tim McGowen

About Tim McGowen

Tim McGowen is the co-founder of informedinvestor.com.au. He was previously the founder of Fortitude Capital the Hedge fund of the Year in 2008 & 2009. More recently he was a global Portfolio Manager for PM Capital.

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