The Agency Group reported 75% growth in combined revenue and continues to rank as top office in Western Australia

KEY TAKEAWAYS:

• The Agency Group Australia (ASX:AU1) achieved strong revenue growth in 2018, a time in which the WA housing market has been declining.
• AU1 Combined revenue grew 75% to $16.8 million ($9.6 million: FY2017)
• Received firm commitments to raise $8.4 million to fund Top Level transaction and national expansion.
• In only 2 years, The Agency and Sell Lease Property now have just over 4% market share in WA compared to the market leader which has 9% market share.
• Awarded Top Office for Listings Sold and Top Office by Value Sold in Western Australia for 2018 at annual REIWA.com Awards.
• The Agency and SLP continue to rank as top offices in WA – No. 1 from July to October 2018.
• In October 2018, The Agency & SLP finished 3^rd in total sales and Year-to-date The Agency and SLP moved up one place to 6^th position.

It has been a significant year for leading disruptive, high-growth real estate agency The Agency
Group Australia with key acquisitions completed, companies successfully integrated into the group,
top office rankings in WA for sales and robust revenue growth delivered across its WA business.

The Agency – which is successfully disrupting the traditional franchise model by giving power back to
the real estate agent and providing a significant value proposition to agents – reported 75% growth
in combined revenue to $16.8 million for FY2018 ($9.6 million FY2017).

Proof the disruptive model works is in the number and quality of sales agents who are attracted to
the company. Sale agent numbers have grown to 185 agents across The Agency (WA) and Sell Lease
Property businesses, up from 50 at same time last year.

When considering The Agency is officially a start-up – having listed on the ASX less than 2 years ago –
this growth represents a phenomenal achievement and is testament to the company’s proven
disruptive model and the tireless efforts of all staff.

Revenue growth is only anticipated to continue, driven by this increase in recruitment. What makes
this revenue growth particularly significant is that it took place in a Western Australian real estate
market that was in steep decline during FY2018.

Top Level acquisition

A major game-changer for the Company is the pending acquisition of high-growth real estate firm
Top Level Real Estate, trading as The Agency on the east coast, for which shareholder approval is
currently being sought.

This acquisition will see the addition of a highly experienced east coast real estate sales and project
marketing team, significant property management portfolio and extensive sales pipe-line.

With the addition of Top Level, The Agency Group will be the only single owner national real estate
business having two prominent brands (The Agency and Sell Lease Property), with ~300 sales
representatives across Perth, Sydney, Melbourne and the Gold Coast (across nine offices).  It will also have over 4100 properties under management, listings of over 1100 and a mortgage book of over
A$1.1 billion.

Post the Top Level acquisition, the Company will have a strong footprint in the Perth and Sydney
residential property markets, with offices in Melbourne and the Gold Coast and plans to expand into
Canberra and further expand its Western Australian options.

In Western Australia, The Agency continued to expand its footprint in 2018 with the acquisitions of
well-known and highly regarded real estate agencies including Sell Lease Property, Beaufort Realty,
Inglewood Estate Agency and Vicus Residential Pty Ltd – the residential sales and management
division of The Vicus Group.

The Company has also raised $8.4 million to provide the funds to progress the Top Level acquisition
and expand Sell Lease Property nationally.

REIWA Awards

In further proof that The Agency’s disruptive model works, the company was awarded Top Office for
Listings Sold and Top Office by Value Sold in Western Australia for 2018 at the annual REIWA.com
Awards.

It reported 667 sales worth over $400 million for the past 12 months, which was 200 more sales and
over $50 million more property sold than second place.

The Agency also finished fourth in project market sales for the year. Sell Lease Property (SLP) would
have come in second place for Listings Sold with 659 sales for the year, however were ineligible due
to the change in ownership.

 

About The Agency Group (ASX: AU1)

The Agency Group are disrupting the real-estate industry by being the first fully integrated real estate and financial services company. The Company uses property transactions and/or financing events to review and service a client’s complete finance and wealth requirements.

The Agency Group wish to raise up to $2.0 million of additional equity capital via the issue of 100m shares at an issue price of $0.02 per share pursuant to a placement (“Placement”). The Company has the ability to accept oversubscriptions of an additional $1.0m.

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