Booming property market still can’t bring profit to The Agency (ASX:AU1)

PHOTO: The Agency

The Agency (AU1) hasn’t been able to turn a profit despite the real estate boom, although losses have narrowed to $1.8 million
The net cash loss after tax was primarily due to the amortisation of the rent roll as well as non-cash financing and interest and finance costs, AU1 says
Despite the loss the company saw growth in key areas, including revenue, EBIDTA and gross commission income
The total number of transactions for FY21 was 4964, up 57.7 per cent from the previous year
Shares in The Agency are down 8.62 per cent to 5.3 cents at 2:02 pm AEST

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A real estate boom hasn’t managed to bring The Agency (AU1) into profitability but losses have tightened to $1.8 million after a $9 million loss in FY20.

The company said the net cash loss after tax was primarily due to the amortisation of the rent roll as well as non-cash financing and interest and finance costs, with the company claiming it has achieved a profitable scale.

Despite the loss, the company’s preliminary FY21 report noted growth, including revenue (up 39 per cent), earnings before interest, taxes, depreciation and amortization (up 544 per cent) and gross commission income (up 69 per cent).

Home loan approvals for FY2021 increased by 24 per cent year on year, from $137.4 million to $170.6 million, according to the company’s Mortgage Solutions Australia division.