The Agency Group Australia is aiming for a third year of 100 per cent year-on-year revenue growth as the company continues to expand significantly in both west coast and east coast property markets.
Investors welcomed the news with the stock (ASX:AU1) jumping 0.3c, or 18 per cent, to a high of 2c in Monday trading.
In its operational review for six months to the end of December 2017, the company experienced significant increases on June HY2017 results in the three main indicators of listings, settlements and gross commissions.
Across The Agency’s wholly-owned operations, there were 322 settlements valued at $190.5 million for the period, a 47% increase on settlements in the previous six-month period.
The number of listings grew to 492 listings during the December HY2017 (30% increase on June HY2017) while gross commissions for December HY2017 came in at $3.76 million (45% increase on June HY2017).
Total value of properties settled increased 48% on June HY2017 coming in at $190.5 million.
The Agency Group MD Paul Niardone said the results show the company’s unique business model works and would continue to provide significant revenues going forward.
In the depressed west coast real estate market, The Agency Group – which has attracted 62 sales agents to WA operations since being established in 2015 – experienced significant growth.
This was illustrated by the company being recognised by REIWA as the Top Office in Western Australia by Listings Sold in September, August and July 2017.
In December, October and November 2017, it came in second place to Sell Lease Property (SLP), a rival real estate company which it is currently seeking to acquire from ServTech Global Holdings.
This acquisition – which will also potentially see The Agency Group acquire a conveyancing and mortgage brokerage – is progressing with company executives meeting with SLP sales representatives to answer any questions and promote the benefits of the transaction.
Meanwhile, The Agency Group is nearing the end of due diligence of Top Level Pty Ltd – a highly-experienced eastern states-based real estate business that includes former McGrath real estate agents Matt LaHood, Ben Collier and Steven Chen.
Last year, The Agency Group signed an option to acquire 100% of the issued capital in the company at any time on or before end of this month.
With the date fast approaching, Mr Niardone sought to ease any concerns from investors.
In regard to our option to acquire 100 per cent of Top Level, we have been working closely with the company and due diligence is progressing,”
he said.
“I look forward to updating investors and the broader market on this transaction in the coming week.”
The company has also entered an office lease in the prime inner suburb of Albert Park, Melbourne with key appointments to be announced in the coming weeks.
The Agency Group Australia, formerly named Ausnet Financial Services, is targeting 600 sales representatives nationally.
The Company is also backed by Finsure Group, one of Australia’s fastest growing retail finance brokerages with over 1,200 brokers settling over $1 billion a month.
