Full year profit at real estate agency McGrath fell 42% to $4.871 million as sales shrink with few listings.
CEO Cameron Judson says the market has been challenging with property listings down 11% and the loss of a number of “high performing” sales agents.
Revenue was up 7% to $129.4 million but EBITDA (earnings before interest, tax, depreciation and amortisation) was down 5% to $15.6 million.
A drag on net profit after tax was a $2.2 million impairment on software.
The company didn’t give numbers for sales agents departing. However, in a February update the company said 36 sales agents had left, leaving 225 still with the company.
Company founder John McGrath brought in Judson, a human resources expert, as CEO a year ago.
McGrath, which floated in December 2015, raising $129.6 million, is the only ASX-listed real estate company. Its shares last traded at $0.77, a long way from the IPO price of $2.10.
However, the business network has grown with another 15 offices, including three company owned offices in NSW, and 12 franchise offices in NSW and Victoria. The McGrath network now has 102 offices, more than 2,300 people and a steady market share of 3.4%.
“We continue to focus on improving the productivity and performance of each of our existing segments and McGrath is exploring new revenue opportunities in adjacent property services,” he says.
“Our aim is to continue to grow the relative contributions of each of our annuity businesses in Property Management, Franchise and Oxygen and de-risk the volatility of our earnings in Company Owned Sales.”
The company declared a fully franked final dividend of 1 cent a share. McGrath also announced an on-market share buy-back.
The 2017 numbers in detail: