John McGrath has announced he will step down as CEO of the company he founded in 1988, and will instead focus on brand, growth and innovation.

McGrath will remain an executive director on the board, but day-to-day operations will be managed by new CEO Cameron Judson.

Other changes to the company's board include Cass O'Connor, a former business partner of Prime Minister Malcolm Turnbull's who has been with the McGrath business for more than 15 years, becoming the new chairwoman to replace David Mackay. Elizabeth Crouch has been appointed as a new independent non-executive director.

"As the company grows rapidly it's important to focus my attention and efforts on the areas of the business that I add most value," said McGrath. "And with an incoming executive of the calibre of Cameron Judson joining it provides a perfect opportunity to allow me to do just that."

The company was floated on the Australian Stock Exchange in December 2015 at $2.10. In April, the shares fell to a low of 91c, but have now recovered to close at $1.15.

The maiden 2015 fully franked dividend was 3.5¢ per share, payable September 28.

McGrath has labelled the current housing market "challenging" after reporting a seven percent decline in its maiden profit as a public company. The profit was $14.6 million for the year to June 30.

Earnings before interest, tax and amortisation (EBITDA) fell 3 per cent to $26.2 million for the year, in line with the company's forecast range of $26 million to $27 million.

"While short-term market conditions remain challenging, the long-term fundamentals of the real estate industry remain attractive, underpinned by historically low interest rates, population growth, and the strength of the asset class generally," McGrath said.

"In order to achieve the long-term growth potential of the business, we will remain focused on the things that are in our control. The current short-term industry uncertainty creates long-term growth opportunities. As a result, we will continue to invest in the business to build long-term shareholder value."

See also:

McGrath opens sixth Melbourne office

McGrath floats

McGrath shares suspended from trading 

McGrath expands its NSW South Coast footprint

McGrath in expansion mode