Agency Australia : Dec Quarter & HY Update and Appendix 4C

For personal use only

ASX Release

28 January 2022

HY FY22 UPDATE & APPENDIX 4C1

ROBUST FINANCIAL & OPERATIONAL RESULTS

Highlights

The Agency GROUP	1Q FY22	2Q FY22	Increase	HY22	Increase on HY21
			Q-on-Q
Total Revenue (M)	$16.1	$19.7	+22%	$35.8	+23%	($29.1M: HY21)
Gross Commission Income (M)	$24.5	$28.4	+16%	$52.9	+39%	($38.1M: HY21)
No. of Properties Sold	1,344	1,566	+17%	2,910	+21%	(2,407: HY21)
Value of Properties Sold (Bn)	$1.4	$1.7	+21%	$3.1	+41%	($2.2Bn: HY21)
No. of Agents	334	345	+3%	345	+16%	(298: HY21)
Listings	1,441	1,609	+12%	3,050	+25%	(2,449: HY21)

• Positive Operational Cashflow of $2.5M for HY22 and $1.2M for December Quarter
• Receipts from Customers of $44.9M for HY22 and $24.4M for Dec QTR
• Cash and cash equivalents at 31st December 2021 of $6.9M
• Current Group CEO Geoff Lucas appointed Managing Director and CEO of The Agency Group effective 28 January 2022
• Company founder Paul Niardone appointed Executive Director, focussed on continuing to grow Western Australian business, national growth of emerging SLP business, expansion of financial services division and advancing a range of technology focused Proptech opportunities

National real estate company The Agency Group Australia (ASX:AU1) ("The Agency" or "the Company") is pleased to announce significant HY22 financial and operational results across its business as it further grows its presence now in five states and territories.

Commenting on the results, The Agency Group's outgoing Managing Director Paul Niardone said:

"The HY22 and December Quarter results continue to vindicate The Agency business model, especially amidst the ongoing volatility brought on by COVID-19 nationally.

While it has been an extremely busy half year, we have remained focussed on growth and quality results and have developed a strong pipeline into CY22.

Cashflow continues to strengthen, and a $6.9 million cash balance underpins our healthy balance sheet. This financial strength coupled with award-winning excellence in essential services and support to our agents and customers will enable us to deliver value to shareholders in the years ahead.

1 Revenue figures provided in this announcement are unaudited

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Lastly, with the vast industry experience of Geoff Lucas as Managing Director and CEO, I am confident the Company is in a safe pair of hands as we focus our efforts on rapidly accelerating our business and successfully driving growth on the East Coast."

Combined group revenue for HY22 was $35.8 million, up 23% on HY21's group revenue of $29.1 million. Group revenue for the December Quarter was $19.7 million, eclipsing the previous quarter's record of $16.1 million.

Gross Commission Income (GCI) for 1HY22 was $52.9 million which is 39% above 1H21. GCI for the December Quarter was $28.4 million, up 32% on the prior corresponding quarter to December 2020.

GCI for the HY22 was based on 2,910 exchanges across the group while for the December Quarter there were 1,566 exchanges.

The Agency sold a combined $3.1 billion worth of property in the HY22, up from $2.2 billion in HY21, a 40% growth. The total value of property sold in during the December Quarter was $1.7 billion.

The pipeline for future sales remains strong with the combined group reporting 1,609 listings for the December quarter.

The Agency's east coast operations reported a total management portfolio of 3,551 PuM at the end of December 2021.

Agent Recruitment Across New Markets

As at 31st December 2021, the Company consisted of 345 agents, a 16% increase on the 298 agents as at 31st December 2020.

Importantly, since 31st December 2021, The Agency has further accelerated its recruitment drive adding four new agents in the ACT, seven new agents in NSW, seven new agents in QLD and four new agents in WA.

December Quarter Graphs

For

COMBINED GROUP REVENUE ($M)

25			29
20			28
		27
15		19.7
16.05		26
10			25
5			24
		23
0	Sep Q-21	Dec Q 21	22

GCI ($M)

	28.4
24.5
Sep Q-21	Dec Q-21

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	SALES
2,000			2,000
1,500	1,566	1,661	1,500
1,344	1,424
1,000			1,000
500			500
0			0
Sep Q-21		Dec Q-21

NUMBER OF NEW LISTINGS (#)

1,441	1,609
Sep Q-21	Dec Q-21

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	NUMBER OF AGENTS (#)
400
350
300	334	345
250
200
150
100
50
0	Sep Q-21	Dec Q-21

Half Year Graphs

COMBINED GROUP REVENUE ($M)

GCI ($M)

For

40				Up 23% H-on-H	60
35				35.8	50
30
				40
25			29.1
	25.2
20				30
15					20
10
10.2				10
5
0	HY FY19	HY FY20	HY FY21	HY FY22	0

Up 39% H-on-H

52.9

38.1

24.9

17.8

HY FY19

HY FY20

HY FY21

HY FY22

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3,500			SALES ($M)			Up 21%	Up 41%
						H-on-H	H-on-H	3,500
3,000								3,086	3,000
2,500							2,910	2,500
2,000					2,407	2,217			2,000
1,500			1,595	1,519					1,500
1,000							1,000
1,129	1,235
500								500
0	HY FY19	HY FY20	HY FY21	HY FY22	0

NUMBER OF NEW LISTINGS (#)

			Up 25% H-on-H
			3,050
		2,449
1,590	1,955
HY FY19	HY FY20	HY FY21	HY FY22

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NUMBER OF AGENTS (#)

400				Up 16% H-on-H
350
300			298	345
250	291	278
200
150
100
50
0	HY FY19	HY FY20	HY FY21	HY FY22

Cashflow commentary

The Agency Group reported Receipts from Customers of $44.9 million for the half year period, a 32% increase on the previous half year's $34 million. Cash and cash equivalents as at 31st December 2021 were $6.9 million.

Cashflows from Operating Activities for the Half Year were $2.5 million and $1.2 million for the December Quarter 2021, the third consecutive quarter of positive operational cash flow for The Agency.

In Payments to related parties of the entity and their associates (refer to 6.1), the $629,000 payment refers to Executive salaries ($224,000), Executive cash bonuses of ($59,000), Non-Executive salaries ($13,000), consulting fees paid ($33,000) and Commissions advanced of ($300,000).

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Under Cashflows from Operating Activities, Item 1.8 (Other: $384,000) refers to the $400,000 deposit placed with the Federal Court's trust. As the legal matter with Magnolia Capital Pty Ltd has now been finalised, the deposit has now been returned to The Agency net of legal fees.

Appointment of Geoff Lucas as Managing Director & CEO2

In December, The Agency announced the appointment of current Group CEO, Mr Geoff Lucas, to the position of Managing Director and CEO, effective 28 January 2022.

Mr Lucas, who has held the position of Group CEO of The Agency since 23 March 2021, has significant executive experience across several industries, including two periods with an eastern seaboard listed real estate company.

The appointment reflects the focus of The Agency on further growing its market share in Australian eastern states markets with its unique business model.

Company founder and outgoing Managing Director Paul Niardone has been appointed Executive Director, focussed on continuing to grow Western Australian business, national growth of the emerging SLP business, expansion of the Company's financial services division and advancing a range of technology focused Proptech opportunities.

ENDS

Announcement authorised for release by the Board of The Agency Group Australia Limited.

If you require further information, please contact:
Investors	Media
The Agency Australia Ltd	Chapter One Advisors
Paul Niardone	David Tasker / Colin Jacoby
T: [phone]	T: [phone] / [phone]

2 Refer to ASX announcement dated 29th December 2021.