The Agency reports improved group performance
The ASX-listed estate agency The Agency has reported another loss, however it is seeing substantially improved group performance including total revenue increase.
The Agency's first half of FY2020 results saw revenue reach $25.2 million, up 140 per cent over the same period last year.
This was namely due to an 87 per cent rise in listings with 40 per cent more properties sold than the first half of FY19.
The Agency put the results down to a marked improvement in the real estate sector on the eastern seaboard during the period.
They had an EDITBA of $1.5 million, post adoption of the new accounting standard AASB. The Agency losses stood at $1.67 million, following the adoption of the AASB 16 accounting standard on leases, and including a $3 million depreciation of the rent roll.
The value of real estate exchanges is up 23 per cent year on year.
The Agency continue to reduce costs, with wage savings of around $678,000 over the six month period.
Cost reductions of $2.5 million are expected to be delivered in FY20.
The Agency Group's managing director Paul Niardone said the results reflect the strength of the brand.
"I am thrilled to deliver yet another set of strong results for the HY2020 which included a maiden positive EBITDA of $533,000", Niardone said.
"These results reflect the strength of our brand and why reputable real estate businesses and agents continue to join our business as they realise we offer higher commissions, reduced risk and higher-level of support compared to franchise and stand-alone businesses."
With a $3.7 million cash balance and using $1.5 million in six months, along with the ATO payment plan, warranted the auditors to indicate an "uncertainty."
