This article is from the Australian Property Journal archive
JOHN McGrath has returned to head up the ASX-listed real estate agency he founded in 1988, again taking on the role of CEO and managing director has Australia’s housing market looks beyond the boom.
McGrath, who is the largest shareholder in McGrath Limited with a 22.25% stake, has taken on the top job immediately. He replaces Eddie Law, who announced he would be stepping down earlier this year after just 18 months into his tenure.
“I have never been more excited about our business. We have an extraordinary platform and team to continue our path towards being the best residential real estate company in the country,” McGrath said.
“With unparalleled talent and our upcoming technology advancements, I could not be more enthusiastic about our future. My plan is to continue to grow our agent productivity within our current footprint and also expand our office numbers across the east coast”, he added.
The agency, which has 107 agencies across the eastern seaboard, listed under McGrath at the end of 2015 with an IPO price of $2.10, but its stock price fell sharply and is now sits at 47c. It closed down 2c after a brief rally on Friday morning following the announcement.
McGrath stepped down in 2016 and remained as an executive director. Since then, CEOs Cameron Judson, Geoff Lucas and now Law have all come and gone as it posted a string of losses. It paid its first dividend since 2017 early last year as it benefited from the COVID housing boom.
McGrath Limited delivered on the top end of its guidance for the first half, with underlying EBITDA jumping 60% to $10.6 million.
“After much consideration, the board believes John is the ideal choice to successfully lead McGrath into its next growth phase with continued earnings for the group,” McGrath chair, Peter Lewis said.
“John’s passion for the business and understanding of the real estate industry is unparalleled, as is his vision and commitment to excellence in marketing, technology, customer service and transparency.”
“We also wish to thank Eddie Law who has sagely guided McGrath during some challenging times, while also finalising two important business transactions and revenue streams. These include a partial sell-down of the Oxygen Home Loan business, and the $6.5 million investment in the digital start-up, Honey Insurance.”
