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.
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.