McGrath has had a strong start to the 2020 financial year, with revenue up by 15 per cent to nearly $49 million in the first half.
The return of market confidence in the latter part of 2019 drove the agency’s better-than-expected results.
“I’m pleased to say that in the face of what has been a challenging property environment, our focus on talent development, improved customer service [and] the execution of our strategy has allowed us to achieve solid results this half,” McGrath CEO Geoff Lucas said.
“Our company-owned sales division, in particular, has benefited from improved agent productivity and has contributed a strong uplift in revenue. As the market conditions improved in Q2 of FY20, we were well placed to capitalise on these positive tailwinds.”
The strength has carried over into January, where the agency has seen an increased number of vendors who have entered the market early, and as a result, benefited from the strong demand, he said.
In a speech to investors on Monday, Mr Lucas emphasised the shape of the company’s balance sheet, as it ended the half with $8.1 million of cash and no debt.
As the company moves forward, Mr Lucas said McGrath would focus on improving the agent experience and productivity across the network, with expansion to continue in key markets.
The strong start to 2020 should positively impact the company for the second half, Mr Lucas said.
“We believe this will have a positive impact on vendor sentiment for the second half,” he said.
“We are strongly placed to continue to gain market share with our experienced agents and strong brand positioning as we continue to turn around the business.”