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CEO, Eddie Law
Source: McGrath Limited
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  • McGrath (MEA) has announced an $18.3 million turnaround in its net profit after tax (NPAT) to $19 million for the 2021 financial year
  • EBITDA improved by $14 million in FY21, allowing for the payment of a fully franked final dividend of one cent per share
  • Despite decreased listing volumes, the group’s revenue increased by 34 per cent from $91.6 million to $122.4 million in FY21
  • With no debt and $35.8 million in cash on hand, McGrath ended the period with net assets of $47.9 million and no borrowings
  • Shares in MEA are up 3.77 per cent to 55 cents as of 1:48 pm AEST

McGrath (MEA) has announced an $18.3 million turnaround in its net profit after tax (NPAT) to $19 million for the 2021 financial year, compared to $900,000 in FY20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by $14 million in FY21, allowing for the payment of a fully franked final dividend of one cent per share, culminating in a total payout of 1.5 cents per share in FY21.

This includes $2.1 million in Government JobKeeper grants, a $2.2 million gain on the conversion of the Parramatta and Blacktown businesses to a collective franchise and a $3.1 million gain on the partial divestment of the Oxygen home loan business.

Despite decreased listing volumes, the group’s revenue increased by 34 per cent from $91.6 million to $122.4 million in FY21, and sales per agent increased by 38 per cent.

The increase in revenue was supported by expansions in Victoria and in New South Wales regional markets, according to the company.

The real estate company sold 14,459 properties in FY21, up from 10,362 in FY20 with each agent on average selling 29.1 properties, up 38 per cent for a combined value of $16.9 billion.

Sales were spread across the 107 McGrath offices, with 29 being company-owned and 78 franchised.

McGrath slightly increased its owned properties under management from 7679 to 7748.

McGrath CEO Eddie Law said a positive market sentiment, price stability in its key markets and strong clearance rates contributed to its sales performance.

“The residential property market has proved to be very resilient during the ongoing COVID-19 pandemic, compared with other sectors,” he said.

With no debt and $35.8 million in cash on hand, McGrath ended the period with net assets of $47.9 million and no borrowings. As of the balance sheet date, the rent roll was valued by management at $48.9 million, of which $36.6 million was left off the balance sheet.

“We acknowledge there may be some COVID related volatility, however the fundamentals of the property market remain strong,” Mr Law said.

“Despite sporadic lockdowns throughout various states, the first eight weeks of the new financial year have seen trading in line with our expectations and our business well positioned for long-term future growth.”

Shares in MEA were up 3.77 per cent to 55 cents as of 1:48 pm AEST.

MEA by the numbers
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