Director General and CEO Geoff Lucas said the Agency now has 393 officers in six states and territories, which recorded $102.5 million in GCI for the period.
National real estate company The Agency Group Australia recorded another year of strong increases in FY22 operating and financial results as it continues to expand its domestic market presence in six states and territories.
The Agency announced a 26% increase in underlying EBITDA from $3.06 million to $3.85 million for FY22.
Revenue increased 24% to $72.7 million (FY21: $58.4 million), primarily driven by a 27% year-over-year increase in gross commission income (GCI) to $102.5 million (FY21: $80.7 million). GCI’s growth was supported by an increase in the number of properties sold, which increased by 15% to 5,709 properties in FY22 (FY21: 4,964), well outpacing Australian market growth of 3, 2%..
Other economies of scale have been realized, with the Agency’s cost of doing business Ratio down to 30.3% of revenue from 34.7% in FY21.
As of June 30, 2022, the Group’s cash and cash equivalents amounted to $8.2 million (June 30, 2021: $5.1 million). Cash growth was underpinned by strong operating cash flow of $4.6 million (lease adjustment before AASB16).
Commenting on the results and outlook, the agency’s Managing Director and CEO, Geoff Lucas, said:
“We are satisfied with the financial results that have been delivered to our shareholders. Expanding our geographic reach, increasing the number of agents, growing our local market presence at lower cost of doing business are our strategic growth levers which provide a solid platform for execution of our future goals.
“Over the past 12 months, we have increased our team by 85 officers, bringing us to 393 officers, compared to 308 the previous year. This agent growth supported our increase in GCI to $102.5 million, which is only a fraction of the $7.6 billiontotal annual pool of Australian residential real estate commissions. Our company is well positioned to continue to grow our share of this pool. »
“Agents are attracted to our direct engagement model which has created a more responsive, efficient and effective model, removing the typical franchise ‘middle layer’. Our direct engagement model relieves our agents of the distractions of managing office overhead and the administrative burden associated with operating a franchise and allows agents to focus on high dollar value activities like service customers,” explained Mr. Lucas.
“As the market tightens, we expect providers to turn to experienced agents who have proven themselves in changing market conditions. We are confident that these market conditions will work to our advantage, not only to help attract new agents to our business and grow our agent base, but also to help many of our existing agents gain market share. in their local suburbs.
Mr Lucas continued: “In terms of price movements, we have revised our national price movement for calendar year 2022 to be negative 4% to 8%. We believe consumer confidence will return as the quantum of interest rate moves decline and a terminal value for this cycle is reached. Once consumer confidence returns, we believe this will lead to a recovery in trading volumes. »
“As of June 30, 2022, the value of Australian residential property was $9.95 trillion, nearly 4 times the value of publicly traded shares in Australia and about 3 times the size of the entire Australian industry. retirements. Consumers should continue to take a long-term view of decisions about their real estate assets,” Lucas noted.
Mr. Lucas believes that although this year’s results are satisfactory, there is still significant market share potential for the Agency.
“Based on our assessment, we have calculated that we have sold a property in approximately 34% of the addressable market over the past 12 months. This shows the potential reach of our current infrastructure, but also highlights that we have many more markets to tap into as we grow our domestic market share. Our strategy is to deepen these existing markets and expand into other markets,” he concluded.
Source: The Australia Agency Ltd