PHOTO: Geoff Lucas, CEO and Managing Director of The Agency
Seasoned property industry veteran Geoff Lucas is stepping down as CEO and Managing Director of The Agency (ASX: AU1) after three years and six months with the relatively young group. During his tenure, the company has grown to manage 10,092 properties and sold an additional $3.3 billion worth in the December half.
The group’s announcement regarding Lucas’s departure was brief, stating that he “has had his contract with the company terminated, with immediate effect,” without mentioning any of his achievements or the reasons behind his exit.
“The departure of the Managing Director and CEO will have no impact on the day-to-day operation of The Agency or its people,” the company assured.
In an interview with Business News Australia, Lucas expressed his intent to spend around six months on gardening leave before exploring new opportunities. “I have a great passion and love for the people in The Agency. I think they’re on a great platform – I think it’s the best platform in Australia,” he said.
“This business is partway on its growth journey. I like to think that I’ve played a significant role in developing that platform and getting it to where it is.”
Despite running at a $4.3 million loss in FY23, The Agency reported a meaningful turnaround in the December half with underlying earnings of around $560,000. “That was a meaningful turnaround – not large numbers, but a meaningful turnaround. I think it represents the fact that the company is now an attraction brand. I think people are starting to understand it more,” Lucas added.
In Lucas’s absence, CEO responsibilities will be shared by Chief Operating Officer Andrew Jensen, Real Estate CEO for the East Coast Matt Lahood, and West Coast Executive Director Paul Niardone, who was Managing Director before Lucas joined.
Lucas’s stint with The Agency is shorter compared to his previous tenure at McGrath Real Estate Agents, where he spent more than 11 years, around eight of which were as Chief Operating Officer before returning as CEO from 2018 to 2020.
“I’m a growth person. I love growing businesses,” Lucas told Business News Australia. “Normally, what I do in organisations is to go in for somewhere between three to four years and start to grow them,” said Lucas, who also led the initial public offering of Credit Corp Group (ASX: CCP).
“Myself and Matt Lahood are good friends and great associates. I think we’ve done a very good job over the past three years in growing the scale, but also growing the quality of the brand.”
The Agency plans to initiate a formal recruitment process for Lucas’s replacement shortly.
In FY23, Lucas received remuneration of $750,328, down from $1.18 million in the previous financial year due to a lower options component. Lucas currently holds 1.87 million shares in the company, valued at approximately $46,795 at the current share price.
Following the announcement of his departure, AU1 shares fell 10.71 percent to 2.5 cents per share.
SOURCE: BUSINESS NEWS AUSTRALIA