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McGrath has finished the 2021 financial year on a high, announcing an $18.3 million turnaround on its previous financial year results.
This morning, the McGraph group reported net profits of $19 million for the year ending June 30, compared with a profit of $0.7 million for the corresponding period last year.
They also reported a revenue increase of 34 per cent to $122.4 million, and revealed a final dividend of 1 cent per share.“The underlying EBITDA result is at the top end of the guidance range provided at the company’s trading update on 26 April 2021, and excludes the $2.1 million worth of government COVID-related grants, a $2.2 million gain on the conversion of the Parramatta and Blacktown businesses to become a collective franchise and a $3.1 million gain on the part divestment of the Oxygen home loans business,” the group stated.Making the announcement on the Australian Securities Exchange (ASX) earlier today, the group noted the “significant improvement” was highlighted by a $14 million rise in underlying earnings before interest tax depreciation and amortisation (EBITDA) to $17.7 million.
McGrath’s revenue rose 34 per cent from $91.6 million to $122.4 million for the 2021 financial year. They also enjoyed a 38 per cent rise in sales per agent for the period, despite total lower listing volumes in the market.
Chief Executive Officer of McGrath, Eddie Law, said the group’s business model had helped drive the results.
“McGrath’s unique business model of combining the strong annuity style income derived from property management and franchise operations, alongside our company owned sales offices, is delivering strong results,” Mr Law said.
“We note that positive market sentiment, price stability in McGrath’s key markets and strong clearance rates contributed to our sales businesses performing significantly better in FY21. Our property management business continues to contribute solid results.
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