National real estate company The Agency Group Australia (ASX:AU1) (“The Agency” or “the Company”) has delivered significant HY22 financial results across its business as it further grows its presence now in five states and territories across Australia.

The Agency has announced a 33% increase in Underlying EBITDA from $1.60m, to $2.14m for the first half of the 2022 financial year after strong growth in the number of transactions.

The increase in revenue was primarily due to a 39% year-on-year increase in Gross Commission Income (GCI) to $52.9 million (1H21 $38.1 million). In the period, The Agency sold 2,910 properties for a combined value of $3.1Bn

Net Profit After Tax for the HY FY22 was $1.25 million compared to $0.83 million NPAT for HY FY21, a 50% increase.

As at 31 December 2021, the Group's cash and cash equivalents increased from 30 June 2021 by $1.17 million to $6.26 million at 31 December 2021 (30 June 2021: $5.10 million).

Ceo Geoff Lucas said, “Our business keeps going from strength to strength and it is underpinned by a strong balance sheet where our Estimated Group Net Assets have growth 5.8% across the 6 month period since 30 June 2021. The business had a total cash position of $6.3m at 31 December 2021 which highlights the business turnaround from 12 months ago and is a credit not only to everyone who has been a part of the company, but especially to Andrew Jenson, Matt Lahood and Paul Niardoni in particular who I would like to thank.”

The net assets of the Group have increased from 30 June 2021 by $1.63 million to $15.77 million at 31 December 2021 (30 June 2021: $14.14 million).

As at 31st December 2021, the Company consisted of 345 agents, a 16% increase on the 298 agents as at 31st December 2020. Importantly, since 31st December 2021, The Agency has further accelerated its recruitment drive adding four new agents in the ACT, seven new agents in NSW, seven new agents in QLD and four new agents in WA.

Commenting on the HY results and outlook, The Agency Managing Director & CEO Geoff Lucas said: “These are pleasing results for our business as we look toward the next stage of growth. I am pleased with how the business served our customers throughout the challenges that COVID provided whilst our team set multiple suburb records.

“So far this financial year we have expanded our geographical presence into Manly in NSW, Sunshine Coast and Toowoomba in Queensland and the ACT. Recent success in agent recruitment has yet to fully flow through to our operating profit and provides tailwind opportunities to grow national market share and earnings for future periods.

“As at 31 December, our team now comprises 345 Agents, a growth of 47 agents across 2021. Our success in recruitment of new agents is attributed to our direct engagement model with agents, which I believe is attractive to agents which the recent recruitment success validates.” Mr Lucas concluded.