McGrath on track to reach forecast earnings despite weakened overall property market

McGrath on track to reach forecast earnings despite weakened overall property market
McGrath on track to reach forecast earnings despite weakened overall property market

McGrath is on track to achieve its targeted $1 million in full-year earnings for 2018.

In a note to the ASX this afternoon, the listed real estate agency said it would achieve earnings before interest and depreciation of $5 million but would then have $4 million in one-off expenses.

There will also be a further $35 million write down of goodwill for the company-owned agencies, which the business acquired in 2015 ahead of its float, leading to a net loss for the full year.

The $35 million write-off is in addition to the $21.8 million impairment to company-owned agencies incurred at its half year.

There was also another $1.1 million goodwill impairment of property management rights.

"The past 12 months have been very challenging for McGrath," McGrath chief executive Geoff Lucas said.
 
"While reduced sales volumes during 2018 impacted the performance of the business, I am pleased with the recent initiatives and the positive rebuilding of the business we have seen."

more details on the conditions and outlook will be provided at the annual results presentation on August 20.

Aqualand will eventually take a 15 per cent stake in the company.

Shares in McGrath were trading unchanged at 38¢ at market close.

"Since I returned to the company in February, we have done a lot of work looking at the coalface of the business and stabilising staff and operations," Fairfax Media reported Lucas saying.

"I'm pleased that it is paying off and we are generating interest in our recruitment of new staff."
Tags: 
Mcgrath John Mcgrath

Comments

Be the first one to comment on this article
What would you like to say about this project?