Agency achieves strong YTD20 Results
17 September 2019
THE AGENCY ACHIEVES STRONG YTD20 RESULTS POSITIVE EBITDA, HEALTHY REVENUE & COST SAVINGS BEING REALISED HIGHLIGHTS – COMBINED GROUP1
- Positive EBITDA (unaudited) of $126,398 for August, ahead of Budget YTD20
- Gross Commission Income (GCI) for August of $3.9m, 2nd highest month on record, and $7.2m for YTD20
- Total value of sales nationally of $213m
- Cost savings being realised in FY20 with August expenses down ~10% on June month
- Record 250 Exchanges for August
- Record 4,359 Properties Under Management at 31st August 2019
- Wins REIWA’s top office for value of listings sold for July and August 2019
- Entitlement Offer reminder – Closing Date of issue is Friday 20th September 2019
The Agency Group Australia (ASX:AU1) (“The Agency” or “the Company”) is pleased to announce strong results for the month of August and YTD20 across the combined group.
The Group achieved positive Earnings Before Interest Depreciation, Taxation and Amortisation (EBITDA) of $126,398 for the month.
The positive EBITDA for August was built on Combined Total Group Revenue of $4.1 million ($7.8 million for YTD 2020).
Gross Commission Income (GCI) was the second highest monthly record with $3.9 million for August (YTD20: $7.2 million) and the Company is on track to achieve over $10 million GCI for the September Quarter.
As previously announced, The Agency has begun implementing a cost savings program across the combined group during FY20 as part of its integration of The Agency’s East Coast and West Coast operations (refer to ASX announcement dated 30 August 2019). It is expected $2.8 million in cost reductions will be delivered in FY20.
The company is pleased to report that this program has already begun taking effect with Total Operating Expenses for July and August down over 10% on June’s Total Operating Expenses.
1 All figures provided in this announcement are unaudited.
Commenting on the YTD results, The Agency Group Managing Director Paul Niardone said:
“It has been a great start to the FY20 year for the combined group.
“Achieving positive EBITDA of $126,398 for August is a major result when considering the continuing instability in the housing market. This result was on the back of the second highest monthly GCI on record and the implementation of cost savings across the group.
“It is also testament to the hard work and dedication of our team of highly experienced agents and staff that we were able to achieve this result. This was further demonstrated by The Agency winning REIWA’s top office for number of listings sold for July and August 2019.
“We have also seen a number of our agents deliver their personal best months ever on both the East and West Coasts. Our disruptive model attracts the best talent that can negotiate the best results for our clients and continues to disrupt the traditional franchise-based real estate model.
“With the onset of Spring, regarded as the best time of year to sell a house, and with further signs of improvements in the property market with house prices increasing by 0.8% in August, we are well placed to deliver another record year and I look forward to updating you on our progress.”
Entitlement Offer – Reminder
The Agency Group is undertaking a 4:7 non-renounceable entitlement issue to raise ~$4.5 million. The Company will also issue one free attaching listed option for every two Shares subscribed for and issued under the Offer.
By now, eligible shareholders should have received a hard copy of the Entitlement Issue Prospectus (lodged with ASIC and ASX on 2nd September 2019) in the mail. Your entitlement will be set out on the personalised Entitlement and Acceptance Form accompanying the Prospectus.
Please note, the Closing Date for the Entitlement Offer is this Friday, 20th September 2019. All eligible shareholders who wish to participate either:
- By accepting all of your rights to subscribe for New Shares pursuant to the Prospectus;
- By accepting part of your Entitlement; or
- By accepting your Entitlement and apply for New Shares under the shortfall offer
need to make sure your completed Entitlement and Acceptance Form and payment reach Advance Share Registry Services (the Company’s share registry) by no later than 5:00PM AWST on the Closing Date.
The Company intends on using the funds raised under the Offer towards potential acquisitions and growth opportunities, repayment of existing debts, expenses of the offer and working capital.
Patersons Securities Limited and Aura Capital Pty Ltd are acting as joint lead managers to the Offer.
Key dates for the Offer
Event Proposed Date Prospectus and Appendix 3B lodged with ASX Monday, 2 September 2019 Notification sent to option holders Notice of Rights Issue sent to shareholders Wednesday, 4 September 2019 Existing shares quoted on an ‘ex’ basis Thursday, 5 September 2019 Record date Friday, 6 September 2019 Despatch of Rights Issue Prospectus to Eligible Monday, 9 September 2019 Shareholders Offer Period Opens Last date to extend Offer Period Tuesday, 17 September 2019 Offer Period Closes Friday, 20 September 2019 Securities quoted on a deferred settlement basis. Monday, 23 September 2019 Notification of under-subscriptions to ASX (if any) Wednesday, 25 September 2019 Shortfall Settlement date Friday, 27 September 2019 Shares Issued Friday, 27 September 2019 Holding statements despatched
If you require further information relating to the Offer, please contact Stuart Usher (Company Secretary) on + 61 8 6380 2555 or via email at Stuartu@theagencygroup.com.au
A copy of the Prospectus is available on ASX’s and AU1’s website.
If you require further information, please contact:
Investors
The Agency Australia Ltd
Paul Niardone, Managing Director
T: +61 08 9204 7955
Media
Chapter One Advisors
David Tasker / Colin Jacoby
T: +61 433 112 936 / +61 439 980 359
E: dtasker@chapteroneadvisors.com.au