This article is from the Australian Property Journal archive
LISTED real estate agents McGrath Limited (ASX:MEA) is anticipating strong results for the first half of FY22, as the group gears up to move into post-lockdown environment.
McGrath Limited is expecting an underlying EBITDA in the range of $10 million to $11 million for the first half of FY22, an increase of approximately 60% or $4 million compared with the same period in the previous year.
“We are pleased with our first four month’s performance for FY22, achieved during a sustained period of COVID-19 lockdown restrictions experienced across our eastern seaboard markets,” said Eddie Law, CEO of McGrath.
However, the group anticipates a NPAT for the first half to be below the previous corresponding period, due to one off items of at least $4 million in the first half of FY21.
“We were able to successfully innovate many of our key processes through these lockdowns, conducting our business operations and transactions through advanced technology and digital solutions,” added Law.
McGrath utilised solutions such as live streamed auctions and virtual property inspections in response to COVID-19 restrictions and resulting health measure.
“Ultimately, our goal through all of this has been to keep our people and communities safe and it has been inspiring to see how well our network and our clients adapted to the online environment throughout the lockdowns,” said Law.
McGrath already saw strong rebounds in FY21, after a rough COVID-19 afflicted FY20, posting a 34% revenue increase to $122.4 million and a NPAT of $10 million at the financial year’s close.
McGrath will post its results for the first half of FY22 to the market on 21 February 2022.
“As we emerge from the COVID-19 lockdowns, we expect supply will increase over the coming months. Buyer demand may become constrained by affordability, helping to moderate some of the strong price gains we have seen. Our business is well positioned for long-term future growth,” concluded Law.
