Uncertainty cast over The Agency viability
Auditors have indicated concerns about the ongoing viability of The Agency.
Its concerns - which revealed a payment plan with the ATO - was contained within its audited annual financial report which was posted to shareholders today.
The group incurred a net loss after tax of $7.83 million during the year ending June 30 2019, which was reported last month in then unaudited accounts.
"These events or conditions, along with other matters indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern," independent auditor Mark Delaurentis at Bentleys said.
The auditors suggested for The Agency to continue as a going concern was dependent on:
- The successful completion of the non-renounceable entitlement offer
- The fully executed Amendment Deed Loan with Macquarie Bank being completed
- The company continuing to meet its current payment plans in place with the ATO or the renegotiation of payment plans with the ATO
- Raising additional finance through its leverage on its rent roll assets
- Continued support from creditors and suppliers
- Profitable operations
Since the June 30 sign off there has been progress in the ticking off of some of the issues including The Agency securing an ongoing financial commitment from Macquarie for the next six months.
Funds from the entitlement offer also happened last month, with the shareholders agreeing to pay fees owed to its consultants as share scrip, including its external PR firm.
Last week there were rumours The Agency were in talks with rival agents in was The Agency described as approaches for a merger.
The annual results posted last month had been unaudited. The Bentley's audit was dated September 30, for the financial year ending June 30.
The directors told shareholders today they consider The Agency remains "a going concern."
There was no early morning trading in the company which has an $8.36 million market capitalisation.
The Agency was launched in January 2017 with the aim of disrupting the real estate industry.