Real estate groups REA and Domain have issued upbeat trading updates for the first months of their 2021-22 financial year – on Friday they were joined by Sydney-based real estate agent, McGrath.
McGrath told the ASX that it was looking at a 60% jump in first half earnings to more than $10 million from the first half of 200-21, a rise of around $4 million.
“Subject to continued market conditions and the Company’s performance, McGrath expects the first half FY22 underlying earnings before interest tax depreciation and amortisation (EBITDA) to be in a range of $10 million to $11 million.”
“On a statutory reporting basis, McGrath noted that Net Profit After Tax for the first half of FY22 is likely to be less than the first half of the prior year. The corresponding prior period included one-off abnormal items of at least $4 million which contributed to reported NPAT in that period.”
The results for the first half of FY22 will be announced to the market on 21 February 2022.
McGrath CEO Eddie Law told the ASX on Friday; “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. 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.
“These solutions include live streamed auctions and virtual property inspections. 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,” he added.
“The fundamentals of the property market remain strong, with liquidity and low interest rates driving buyer demand. 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”, said Mr. Law.
