The Agency Group Australia (ASX:AU1) continues to deliver strong results with a record breaking month across all its core business divisions in May while further expanding its footprint in Western Australia.
The company’s West Coast operations posted a revenue record of $2 million for May 2018 bringing total revenue to $13.5 million year-to-date May 2018, on target for around 45% growth year-on-year.
The Agency real estate sales posted gross commission income of $7.55 million while SLP posted $1.5 million (March – May), totalling $9 million of commission income for YTD May 2018.
The Agency Property Management reported monthly income of $116,000 for May and added 96 new property managements.
Mortgage and Financial Solutions Australia posted a record month of $20 million in loan lodgements while the loan book grew 9.5% against a drop of 18% in the Western Australian lending market.
Landmark Settlement recorded 103 settlements for the month of May bringing in just over $100,000.
Since being acquired in March, Sell Lease Property (SLP) continues to deliver strong results, recording 115 properties settled and 324 listings for the two months to May 2018.
In May 2018, The Agency and Sell Lease Property combined ranked fifth in Western Australia for $ value and fourth in number of sales.
These are exceptional results for our Western Australian operations, especially when considering the market is still down 1.8% in dwelling values to May 2018 and sales turnover, for the same period as last year, was down 5%,” said The Agency managing director Paul Niardone.
“The numbers also demonstrate that the referral of clients into other business units is working. The results illustrate we have a proven model that is disrupting the traditional franchise model by giving power back to the real estate agent and providing a significant value proposition to agents.
“The traditional model has had its time and The Agency has proven this by showing that, combined with Sell Lease Property, we are knocking on the door of claiming number one ranking in WA for number and value of sales,” he added.
Meanwhile, The Agency has agreed to extend its option agreement to acquire fast-growing eastern states real estate firm Top Level Real Estate until 11th October 2018.
According to The Agency, management teams will continue working together on the structure of the transaction while both businesses will continue to run as standalone businesses.
Since its inception in April 2017, Top Level has witnessed significant growth with 104 agents recruited, over $11 million of sales and $16 million in group revenue reported for YTD May 2018.
The Agency Group also acquired established Inglewood Real Estate which adds around 80 property managements to the company and has secured a $1.1 million loan on normal commercial terms to be used for general Working Capital purposes.
Shares in The Agency were last trading at 1.3c.