National real estate company The Agency Group Australia (ASX:AU1) has reported further positive operational and financial results across its business for the March Quarter 2022, as it further accelerates its growth across Australia.
We are pleased with the 26% revenue growth achieved in the March quarter, continuing the momentum achieved in the first half of the year. We continue to generate strong operating cash flows, with $1.0m operational cash flow in the quarter which further continues to strengthen our balance sheet position,” Managing Director and CEO, Geoff Lucas, said.
“We hold a healthy cash balance with around $8.0 million in cash and cash equivalents, positioning us well to participate in organic and inorganic accretive opportunities. The March quarter saw our entry into three new geographical areas in Manly on the Northern Beaches of Sydney, Toowoomba in Queensland, as well as Canberra in the ACT.
“Agent recruitment remains strong with an increase in agent numbers to 376 at quarter end, an increase of 67 from 308 agents at 30 June 2021. The continued growth reflects increasing awareness in our brand and our direct engagement model with agents.”
Combined group revenue for the March quarter was $18.8m, compared to previous corresponding period’s revenue of $14.9m. Gross Commission Income (GCI) for the period was $25.4m, compared to March quarter 2021 GCI of $20.0m. GCI was based on 1,421 exchanges across the group.
The Agency sold a combined $1.4 billion worth of property, compared to $1.2 billion during the March quarter 2021. The pipeline for future sales remains strong with the combined group reporting 1,469 listings for the March quarter.
The Company reported cash flows from Operating Activities of $988,000 for the March Quarter 2022. Receipts from customers of $23.5m for the three-month period, an increase of $6.0m from the $17.5m achieved in March quarter 2021. Receipts are slightly below the December quarter primarily due to the seasonal nature of underlying GCI.
During the quarter, the company invested $385,000 in the redevelopment of its Neutral Bay (NSW) and Claremont (WA) hub locations. The $486,000 cash receipt relates to the final retention funds received from the disposal of the WA rent roll which was settled in October 2020. Cash and cash equivalents as at 31st March 2022 were $7.96 million.