The Agency reports bigger loss and announces $2.8 million cost cutting
The Agency has reported an annual $4.2 million EBITDA loss, which is up on its prior $3.1 million annual loss.
The listed estate agent announced it had identified $2.8 million in cost cutting measures, The Agency told the Australian Securities Exchange this morning.
The group reported a net loss before income tax of $7.7 million compared with $3.9 million in the prior year.
There was no update from the company which is currently in discussions with a number of parties in relation to the refinance of a debt facility ahead of its maturity which occurs on 30 September, 2019.
The company's share price recently hit an all time low of 6.7 cents, today they are trading even lower 6.4 cents per share with no movement since the ASX closed on Friday.
The Agency Group Australia was announcing its results for the year ended 30 June 2019.
The Agency reported annual group revenue of $31 million, an 86 percent increase year-on-year on FY2018 when it was $16.8 million.
The growth followed prior 75 percent growth and 70 percent growth during its initial two years.
The agency saw 2,419 sales, up from 667 sales for FY18.
It was $2.5 billion worth of property sold.
The increase in revenue was primarily due to a 31 percent increase year-on-year in combined gross commission income to $38 million. In FY18 it was $29 million.
At the completion of FY2019, the company also had 3,430 listings, up 43 percent on the 2,401 listings at the end of FY18.
Property management reported a record total of 4,337 properties under management, up 29 percent.
The company also reported an increase year-on-year in the number of agents recruited, up from 185 over the year to 272 agents as at 30 June 2019.
The Agency Group reported cash receipts of $33 million for the FY2019, a 120 percent year-on-year increase on FY18's $15 million.
The Agency Group reported $44,000 net cash from operating activities for the June quarter as a result of an increase in cash receipts for the period.
The financial results only include six months of operations from Top Level Real Estate - the McGrath rebels - following completion of the acquisition in mid-January 2019.
The EBITDA loss of $4.2 million included $1.3 million of one-off, non-recurring costs expensed this year, primarily associated with the Top Level transaction (i.e. legal, accounting, professional services, corporate advisory, financing and office fit-outs, etc ).
The company would have had a normalised EBITDA loss of $2.9 million, excluding the Top Level expenses.
Its cash at end of financial year was $2.6 million.
"The company has already identified and has begun implementing $2.8 million in cost savings that will be delivered in FY20," it advised.
Trade payables have blown out from $7.4 million to $13.6 million.