- The number of real estate agents increased by 16%
- Profit grew by 50%
- Gross commission income rose 39%
The Agency (ASX: AU1) has reported a fifty per cent increase in profit in its HY22 results. The real estate company continues to expand with the number of real estate agents on board moving up 16% to 345; the figure was 298 in the previous corresponding period.
A recruitment drive was also in place across the country, AU1 added four agents in the ACT, four in WA, and seven each in NSW and QLD.
On the subject of agents, The Agency MD and CEO Geoff Lucas said: “Our success in recruitment of new agents is attributed to our direct engagement model with agents, which I believe is attractive to agents which the recent recruitment success validates.”
|
|
HY22 ($M) | HY21 ($M) |
Change % |
|
Gross commission income |
52.9 | 38.1 | +39% |
| Revenue | 35.56 | 29.45 |
+21% |
|
Normalised EBITDA – pre AASB16 |
2.14 | 1.60 | +33% |
| NPAT | 1.25 | 0.83 |
+50% |
In company financials, The Agency announced a 33% increase in Underlying EBITDA from $1.60 million, to $2.14 million for the first half of the 2022 financial year after strong growth in the number of transactions.
The rise in revenue was primarily due to an almost 40% year on year increase in gross commission income. The Agency sold 2,910 properties for the period for a combined value of $3.1 billion.
As at 31 December 2021, the Group’s cash and cash equivalents increased from 30 June 2021 by $1.17 million to $6.26 million at 31 December 2021 (30 June 2021: $5.10 million).
The net assets of the Group have increased from 30 June 2021 by $1.63 million to $15.77 million at 31 December 2021 (30 June 2021: $14.14 million).
“These are pleasing results for our business as we look toward the next stage of growth. I am pleased with how the business served our customers throughout the challenges that COVID provided whilst our team set multiple suburb records,” said Mr Lucas.
“So far this financial year we have expanded our geographical presence into Manly in NSW, Sunshine Coast and Toowoomba in Queensland and the ACT. Recent success in agent recruitment has yet to fully flow through to our operating profit and provides tailwind opportunities to grow national market share and earnings for future periods.”
In its outlook, AU1 said that following a period of very buoyant conditions for the market, the company expects a period of moderation in price growth as the market moves toward equilibrium in response to macroeconomic influences.
Despite the expected moderation in price growth, The Agency expects transaction growth from expanded agent numbers and new geographical markets.
