High-growth real estate firm The Agency Group (ASX:AU1) has delivered record quarterly results across revenue, gross commission income and exchanges while posting a second consecutive quarter of positive cashflow.
Cashflow from operating activities came in at $73,000 which builds on June Quarter’s $44,000 in positive cashflow.
Gross Commission Income (GCI) was a record A$10.7 million on the back of a record 701 exchanges and more than $630 million worth of property sold, the second highest quarter on record.
Across the combined group, there were 883 new listings, 15% higher than the prior period.
Property management continues to grow with The Agency reporting a record total of 4,397 properties under management (PUM) for September Quarter, up 1.4% on June Quarter.
At end of September, there were 280 agents operating under the combined group.
The Agency Group’s managing director Paul Niardone said the results were further proof the company was continuing to grow from strength to strength while competitors were languishing.
We have the best model and value proposition in the market to attract the best talent and deliver best outcomes for consumers,” he said.
“Against all the negative market sentiment and commentary against our model we have again achieved enviable results. We have clearly disrupted the market, recruited some of the best agents in the industry and achieved industry leading results – which we know has grabbed the attention of our competitors who now realise The Agency is here to stay.”
Today’s news comes after the recent raising of $5.6 million in new funds and $5.8 million debt to equity conversion. The funds help strengthen the Company’s balance sheet by repaying existing loans while providing the necessary funds to accelerate The Agency’s growth plan in key real estate markets.
“We have a strong balance sheet and the funds needed to continue our sustained growth plans. Importantly our key shareholders, including those that have recently joined our share register, continue to back our model and when provided with the opportunity invest further,” Mr Niardone said.
Looking ahead, Mr Niardone said there was growing optimism of a sustained rebound in property prices.
“On the east coast, there is recent evidence of a turnaround in house prices in Sydney’s affluent eastern suburbs – The Agency’s primary market in Sydney – with CoreLogic data showing house prices have risen 4.2% for the September quarter and are driving the market rebound,” he said.
“This bodes well for The Agency to continue on its growth trajectory.”
The company is also on target to realise $2.8 million in costs savings for 2020 financial year. During the quarter, The Agency reported a reduction in staff costs, admin and corporate costs and advertising and marketing costs.