proptech group joe hanna executive feature
Proptech Group executive Joe Hanna. Image – Proptech Group.
  • Revenues increased 29% from H1 and H2 of FY21
  • Underlying EBITDA is $1.9 million
  • Joint venture to create buy now pay later for real estate

Proptech Group (ASX: PTG) has had a ‘transformative’ financial year, according to CEO Joe Hanna. “Since re-listing in November 2020 PropTech Group has made several strategic acquisitions and extended our leading market share of real estate agencies using our CRM SaaS products in Australia and New Zealand,” said Mr Hanna.

The company also doubled its team since relisting, with 103 onboard as of June 30.

PTG continued to grow its revenue with a 29% increase from $4.9 million in the first six months of FY21 to $6.3 million in the second half of the financial year. The underlying EBITDA is $1.9 million, the company also has $2.3 million in positive underlying net operating cashflow, and annualised recurring revenue of $12.4 million.

FY21 Change Direction
Total revenue and other income $11.63 million 288%
Revenue from ordinary activities $11.174 million 291%
Loss from ordinary activities after tax attributable to members $1.001 million 160%
Net loss for the period attributable to members $1.001 million 160%

PTG noted that “The acquisition by [Proptech Group] of Real Estate CRM Pty Ltd is deemed to be a reverse acquisition under the principles of AASB 3 “Business Combinations” since the substance of the transaction is such that the former shareholders of RECRM are deemed to have effectively acquired [Proptech Group].”

“As a result of the reverse acquisition treatment, RECRM is considered the accounting acquirer, and [Proptech Group] is deemed to be the accounting acquiree.”

The financial information and report for FY21 noted it was prepared according to AASB 3.

“This means RECRM has been accounted for 1 July 2020 – 30 June 2021, while the Company has been consolidated from 1 November 2020 to 30 June 2021.

“For the financial year 2020 the basis of preparation relates to RECRM accounts as a private entity and for the period of 13 February 2020 to 30 June 2020.”

Joint venture to launch PropPay

Proptech Group has executed a non-binding term sheet with Flip Money, Convini, and BC Investment Group Australia to form PropPay Joint Venture. PTG will initially hold a 20% shareholding in PropPay.

PropPay will be a payments platform “that will allow real estate agency operators and third-party platforms to offer payments and buy now pay later (BNPL) solutions to their customers for real estate related services.”

The JV will provide real estate industry participants in Australia and New Zealand with card and online payments via open application program interface (API) and BNPL solutions.

Mr Hanna said the aim of PropPay is: “… to bridge the gap between PropTech and FinTech”.

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