High-growth real estate group The Agency (ASX:AU1) has jumped in Thursday trading after securing a $11 million funding package to strengthen its balance sheet while notching up its best quarterly results to date.
The long-term funding package includes the issue of $5 million in Convertible Notes to private investment company Peters Investments and $1 million in Convertible Notes previously issued to Peters Investments.
With these funds, coupled with the $3.5 million sale of its WA property management portfolio, The Agency has reduced its debt position from $12 million to $5 million and has extended the repayment terms of the $5 million primary secured debt facility with current primary funder and leading banker to the property industry, Macquarie Bank to 24 months. The funding package remains subject to shareholder approval.
The Agency has also reported a record-breaking quarter across all key metrics with unaudited EBITDA of $723,000 and $2.5 million in positive operational cash flow.
Combined Gross Commission Income (CGI) was $16.6 million of which $6.4 million GCI was delivered for September month while combined group revenue for the quarter was $13.59 million.
Sales for the quarter were 1,117 across the combined group valued at $948 million while there were 1,240 listings across the combined group.
The Agency Group’s Managing Director Paul Niardone said the September quarter results were a watershed moment in The Agency’s short history.
We are now reaping the benefits of rebounding real estate markets in WA and NSW coupled with prudent business continuity measures taken during the COVID-19 pandemic,” he said.
“The Agency has experienced an extremely busy quarter with listings continuing to grow, providing a strong sales pipeline to Christmas.”
Mr Niardone noted that the $11 million funding package would cement The Agency’s continuing growth prospects
“With the continuing support of our primary debt funder Macquarie Bank and private investment company Peters Investments, we have recently secured a long-term funding package that provides us with greater certainty across the business,” Mr Niardone said.
The Agency has also settled its previously announced ~$3.5M sale of WA property management portfolio to, and has entered into a strategic alliance with, Managex Funds Management Pty Ltd.
“This will drive sales team recruitment and additional property sales going forward,” Mr Niardone said.
“These major achievements, coupled with the solid September Quarter results, highlights the robustness of our business model and places us in a strong position to significantly accelerate our growth prospects nationally.” Mr Niardone added.
The stock was trading 0.6c or 17% higher at 4.1c at 1:30pm AEST.
