PHOTO: McGrath
ASX-listed McGrath Limited has revealed its full-year results, posting a return to the black for earnings and an 11 per cent improvement to revenue.
In a statement for shareholders, McGrath highlighted its earnings before interest, taxes, depreciation and amortisation (EBITDA) was $3.7 million for the year — a $10.1 million turnaround from underlying EBITDA loss of $6.4 million last financial year.
Calling the turnaround “significant”, the real estate giant posted an 11 per cent lift in revenue to $91.69 million for the year — a 31 per cent rise in sales per agent for the period, achieved despite the negative effects of the COVID-19 pandemic in the last quarter.
The board said it was pleased with the $10 million turnaround, as well as a return to after-tax profit and a further strengthening of the balance sheet with $17.3 million in cash.
“Our business performed significantly better than the market during the year and we have a strong platform on which to build in 2021, notwithstanding the ongoing impacts of COVID,” it said.
McGrath has attributed a number of initiatives to the turnaround which included:
- A move of the company’s headquarters to Pyrmont
- A reinvigorated IT solution focused on a new CRM platform that saw a widespread rollout
- The launch of a new data-centric website that provided more than 500 vendor and landlord leads and over 11,000 buyer inquiry leads
- Continued revitalisation of the property management business
- The acquisition of four company-owned offices (Millers Point, Castle Cove, Northbridge and Wilston) to complement new franchise offices in Ulladulla, Mollymook, Albury | Wodonga and Mansfield
The balance sheet
The above initiatives enabled McGrath to close with a strong balance sheet: no debt, $17.3 million in cash and $30.2 million in net assets.
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