The Agency Group (ASX: AU1), which recently changed its name from Ausnet Financial Services Limited, has had a strong first year as a public company and appears poised to close a significant transaction in the near future, with its half yearly report giving an insight into its intentions to take up an option to acquire high profile east coast real estate business.
In what has been recognised as a tough Western Australian property market, The Agency Group has recorded some impressive results.
In its half year report lodged today on the ASX, covering the six month period to 31 December 2017, The Agency Group confirmed it had completed 322 settlements across their wholly-owned operations, valued at $190.5 million, which represented a 47% increase on settlements in the previous six-month period.
The number of listings grew to 492 listings during the period, a 30% increase on June HY2017, while gross commissions for December HY2017 came in at $3.76 million, a 45% increase on June HY2017.
The innovative financial services business also confirmed it is ontarget for FY2018 revenue growth of 100% year-on-year, having achieved 82% of the previous years total gross commissions in the first 6 months.
Commenting on its positive half year results, The Agency Group Australia Managing Director, Paul Niardone, said, “The six months to 31st December 2017 has been a pivotal time in the short history of the company as we continue our significant growth trajectory in both west coast and east coast property markets.
The three main indicators of listings, settlements and gross commissions all experienced significant increases on June HY2017 results, showing that the company’s unique business model works and will continue to provide significant revenues going forward.”
Interestingly, a number of subtle cues also give investors confidence its much talked about acquisition of high profile east coast real estate business, Top Level Pty Ltd, appears on track and will be positively resolved soon.
Top Level, which boasts some of Australia’s leading property professionals and which has been achieving strong growth of its own, is operating under licence to The Agency Group, with the latter having the right to acquire the business on or before 31 January 2018.
While investors may have been nervous, as the Option Agreement deadline neared, The Agency Group Half Yearly Report should appease those fears. According to the Half Yearly Report, Top Level CEO, Matt Lahood, has been playing an integral role in the acquisitions and growth plans of The Agency Group – a sure sign he is part of its future plans.
Mr Lahood has been actively involved in meeting with sales representatives of Sell Lease Property, which The Agency Group Australia is looking to acquire as part of its acquisition of the national real estate agency, conveyancing and mortgage brokerage businesses from ServTech Global Holdings Ltd.
In addition, Mr Lahood played a part in The Agency Group securing a recent office lease in the prime inner suburb of Albert Park, Melbourne.
The Agency has stated the acquisition of Sell Less Property, which boats approx. 210 real estate agents nationally, could see the number of real estate agents within its network grow to 380 nationally, in only its first 12 months since listing (this includes The Agency real estate agents in Top Level in Sydney). The company is targeting over 600 sales representatives in the next three year which, if achieved, would place it in the top five real estate groups nationally.
In addition to its national real estate business, The Agency Group will also acquire:
– complete settlements, which achieves approx. 50 deals a month. This would effectively double the size of The Agency’s settlement business and places the company as one of the top settlement agencies in Western Australia.
– a loan book for value finance of over $100m, which would take the combined groups to approximately $1.2 billion.