The Agency is celebrating success, with their financial results for 2019/20 indicating a turnaround in cashflow and earnings before interest, taxes, depreciation, and amortization (EBITDA), along with a 48 per cent increase in revenue.
Released on August 31, The Agency’s ASX announcement highlights 12 months of operational growth and improvement, resulting in revenue of $41.86 million, compared to $28.34 million in 2019.
In addition, the group posted its first full-year positive EBITDA of $2.66 million compared to -$4.25 million the year prior, along with its first full year positive cashflow from operating activities.
Highlights included:
- FY20 EBITDA2 of $2.66 million
- Pre-adoption of AASB 16 leasing standard, FY20 EBITDA of $711,714 – a $4.9 million turnaround from FY19 EBITDA loss of $4.25 million
- FY20 positive cashflow from operations of $334,704, compared to FY19 negative cashflow of $6.4 million (a $6.76 million turnaround)
- Annual Group Revenue up 48 per cent year-on-year to $41.86 million
- Cash receipts of $42.53 million, up 42 per cent year-on-year from $30 million
- Cash at end of financial year of $2.72 million (FY19: $2.6 million)
Commenting on the results, The Agency Group’s Managing Director Paul Niardone said he was “exceedingly proud” of all The Agency had achieved in the 2020 financial year.
“To report a maiden EBITDA profit, positive cashflow, a strong gain in revenue and other key metrics is a major achievement and testament to the hard work and dedication of our agents and our staff, especially when considering the impact of COVID-19,” Mr Niardone said.
“Our quick response to COVID-19 has placed us in an enviable position, allowing us to rebound strongly in key markets.”
The report to shareholders noted the increase in revenue was primarily due to a 26 per cent increase year-on-year in Combined Gross Commission Income to $47.9 million (FY19: $38 million).
This figure was bolstered by 3153 sales (up from 2419 sales for FY19) and $2.9 billion worth of property sold across the combined group for the FY2020 (FY19: $2.5 billion).
The brand’s property management also continued to grow, with The Agency reporting a record total of 4838 Properties Under Management as at 30 June 2020, up 12 per cent on the prior corresponding period, and generating approximately $9 million revenue annually.
The company also witnessed growth in its Mortgage Solutions Australia (MSA) business, with home loan approvals for FY2020 up 11 per cent year-on-year from $124.2 million to $137.4 million.
As at 30 June, The Agency comprised 283 sales agents with average Gross Commission Income (GCI) increasing by over 20 per cent over the past 12 months.
