- Strong transactions figures, 57.7% up from last year
- Group revenue and commission income both increased
- Full year gross commission income $80.7M
The Agency (ASX: AU1) June quarter results show robust growth, and affirm the business models success, said The Agency Group’s Managing Director Paul Niardone.
“Despite the continuing challenges brought on by COVID-19 nationally, our business model continues to be validated by our results, both operational and financial,” Mr Niardone said, noting the company increased its revenue by 74% over Q2 on the back of $22.7 million in combined gross commission income.
AU1’s overall scorecard is strong, the company noted its unaudited earnings before interest, tax, depreciation, and amortisation is expected to exceed $4 million, representing a 570% increase on FY21 of $700,000.
Other details include a combined group revenue of $16 million for the June quarter of 2021, the 2020 figures for the same quarter was $9.2 million. The combined gross commission income is $22.7 million, representing a 108% increase on Q2 last year.
Gross Commission Income (GCI) for the year is $80.7 million, which is an increase of 68.5% over the prior year of $47.9 million, with exchanges growing 57.74% to 4,964. Gross Sales Value across the group grew by 64.6% to $4.84 billion compared to $2.94 billion in the prior year.
“These results confirm the company is maintaining strong growth and has achieved sufficient scale so that further revenue increases will contribute to increasing margin and profitability,” Mr Niardone said.
Of course, these strong figures come off the back of strong transactions numbers. The company delivered a 57.7% increase in transaction numbers, well more than the 40.7% market growth.
As of 30 June, The Agency had a combined 308 sales agents, up from 283 sales agents at end of June 2020. Properties under Management (PuM) at end of June 2021 were 3,517.
Cashflows from operating activities for the quarter were $1.47 million. This included $157,000 which was related to legal costs regarding the court case with Magnolia Capital Pty Ltd.
Staff costs increased from $3.4 million in March Quarter 2021 to $4 million in June Quarter 2021 due to both timing of payments and a reduction in JobKeeper payment support.
