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FY20 positive EBITDA & Cashflow for The Agency - TechInvest Magazine Online

Written by Staff Writers | Aug 31, 2020 9:31:35 AM

It has been a milestone FY2020 for high-growth real estate group The Agency (ASX:AU1) delivering first full year positive EBITDA and cashflow despite the impact of COVID-19 pandemic.

EBITDA came in at A$2.66 million while cashflow from operating activities was $334,704 for FY20, a $6.76 million turnaround on the previous year’s negative cashflow from operating activities of $6.43 million.

Based on pre-adoption of AASB16 leasing standard, EBITDA profit was $711,714 for FY2020 representing a $4.9 million turnaround on the previous year’s EBITDA loss of $4.25 million.

I am exceedingly proud of all The Agency has achieved in FY2020,” The Agency Group’s Managing Director Paul Niardone said.

“To report a maiden EBITDA profit, positive cashflow, a strong gain in revenue and other key metrics is a major achievement and testament to the hard work and dedication of our agents and our staff, especially when considering the impact of COVID-19.

“Our quick response to COVID-19 has placed us in an enviable position, allowing us to rebound strongly in key markets. We have generated a strong sales pipeline which has flown through into the first quarter FY21 with a record 446 listings for July 2020.”

Annual Group Revenue jumped 48% year-on-year to $41.86 million while Combined Gross Commission Income jumped 26% year-on-year to $47.9 million.

This figure was bolstered by 3,153 sales (up from 2,419 sales for FY19) and $2.9 billion worth of property sold across the combined group for the FY2020 (FY19: $2.5 billion). Property management reported a record total of 4,838 Properties Under Management as at 30 June 2020, up 12% on the prior corresponding period, generating ~$9 million revenue annually.

The company also witnessed growth in its Mortgage Solutions Australia (MSA) business with home loan approvals for FY2020 up 11% year-on-year from $124.2 million to $137.4 million.

The Agency had 283 sales agents (East Coast: 142, West Coast: 141) at the end of the year with average Gross Commission Income (GCI) increasing by over 20% over the past twelve months. The Agency said it would be looking to boost agent numbers in the coming quarters.

Net assets of the Group by $2.51 million year-on-year to $11.54 million at 30 June 2020.

The company’s rent roll and Mortgage book, which have an estimated market asset value of over $27.0 million, contribute an annuity income to the business of more than $10 million per annum.

The Agency said it was looking at a range of strategic partnerships and JV opportunities it believes will drive agent recruitment and sales revenue in the coming reporting periods.

Shares in AU1 were last trading at 2.8c.