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Against a background of requiring market conditions, McGrath revealed its FY16 first-half outcomes. Unsurprisingly, they show the well-documented challenges the business has faced considering that launching an IPO more than a year ago.
Although McGrath reported a boost in market share in the very first half of the 2016-2017 fiscal year– of close to 4 per cent versus the very same period in 2015-2016– pro forma revenue was down 11 percent to $67 million in the half. Pro forma EBITDA was down 37 per cent to $9.3 million and pro forma NPAT was down 72 percent to $2.4 million.
However, statutory NPAT was up from $0.4 million to $2.7 million and the business ended the period with $5.3 million in cash and no bank debt.
McGrath CEO Cameron Judson stated the current loss of several sales agents, integrated with low listings volumes and a drop in sales, created a “difficult market environment” for the business.
” Plainly the essential property we have in our company is our sales representatives, and it was frustrating to lose the variety of agents we lost over the December January duration,” Mr Judson told RPM sibling title REB.
” The quality of some of those individuals will impact our profits.”
But he said the underlying strength of the McGrath service model enabled it to stay above water in the half, delivering a $9.3 million pro forma EBITDA.
Mr Judson also addressed the business’s annuity organisations in home management and franchise, which provided revenue and EBITDA growth half-on-half.
” I wish to thank all our team and franchise partners for their energy, dedication and dedication during exactly what has actually been a tough begin to the year,” he said.
Mr Judson stated McGrath is among Australia’s largest residential property service business, and it would continue to take advantage of the hidden strength of its brand name and quality of its sales agents and network reach as it sets to recuperate lost ground.
” With a concerted, ongoing concentrate on skill identification, McGrath continues to draw in, establish and keep emerging and high-performing sales representatives,” he stated.
” We have an unparalleled track record of growing and supporting the very best real estate agents in Australia, and have just recently launched ‘McGrath Future’, an engaging reimbursement and longer-term wealth production structure specifically for high-performing representatives.”