PHOTO: McGrath Estate Agents. FILE
In spite of prevailing macroeconomic conditions, the ASX-listed company managed to achieve a notable 42 percent surge in operating profit, which the CEO interpreted as a positive indicator.
However, he emphasized that the primary focus of the business remains centered on expanding its market share. “Even if the overall market is contracting, our growth in market share enables sustained business expansion,” he added.
Presently, McGrath holds a market share just under 3 percent nationally, a figure the CEO deemed slightly unfair due to the company’s limited presence in certain regions. He elaborated, stating that across various regions where they operate, their market share typically ranges from 2.5 to 5 percent, with some areas reaching as high as 84 percent, representing their largest market share.
The CEO reiterated the company’s commitment to focusing on controllable factors, emphasizing that market share remains within their realm of influence. “We aim to sidestep excuses like listing shortages or consumer confidence dips, as transactions still occur to a certain extent. Our goal is to ensure continuous growth in our market share,” he explained.
Looking ahead, as the brand eyes expansion beyond the eastern seaboard, the CEO expressed aspirations of becoming the leading real estate agent in Australia, surpassing competitors like Ray White by achieving double-digit market share ranging between 12.5 to 15 percent within the next five years.
Confident in the company’s capabilities, team, and brand, he stated, “We’re fully committed to this objective and are eagerly anticipating the journey ahead.”
With the company’s half-yearly results being described as robust, it was disclosed that McGrath had achieved an underlying EBIT of $4.2 million, underlying EBITDA of $4.8 million, and statutory net profit after tax of $7.5 million.
The statutory net profit after tax marked a substantial $5.7 million increase compared to the previous corresponding period, while underlying EBITDA experienced a notable 42 percent ($1.4 million) uptick over the same timeframe.
Expressing satisfaction with the results, Mr. McGrath attributed them to the collective effort of the management team, exceptional agents, and the strength of the brand.
Based on these outcomes, McGrath Estate Agents has declared a 1.5 cent fully franked interim dividend per share, along with a 1.5 cent per share fully franked special dividend.