ASX-listed McGrath Limited has announced a new non-executive director, a fortnight after releasing significant turnaround profits.
McGrath has announced the appointment of an additional non-executive director, with Shane Smollen announced on 3 September.
The news follows McGrath’s financial results released on 25 August showing earnings before interest, taxes, depreciation and amortisation (EBITDA) was $3.7 million for the year — a $10.1 million turnaround from underlying EBITDA loss of $6.4 million last financial year.
Calling the turnaround “significant”, the real estate giant posted an 11 per cent lift in revenue to $91.69 million for the year — a 31 per cent rise in sales per agent for the period, achieved despite the negative effects of the COVID-19 pandemic in the last quarter.
A leading property professional since 1983, Mr Smollen owned one of the country’s leading real estate networks before selling it to McGrath in 2015.
Mr Smollen, who currently holds 7.94 per cent of McGrath’s issued capital, has been advising McGrath’s sales management team over recent months with a focus on productivity and revenue growth.
Chair of McGrath Peter Lewis welcomed Mr Smollen to the board, noting the timing of it as the company returns to profit under new chief executive Eddie Law.
“Shane brings to the board an excellent real estate track record with expertise in all aspects of the sector, combined with integrity and insights that will accelerate our profit turnaround and restore shareholder value,” he added.
Mr Smollen spoke of his delight about joining the board, believing the company is in a strong position to take advantage of an expert’s consideration of the real estate sector.
“McGrath has an excellent brand, 99 offices and a team of about 2,000 professionals, many of whom I have known for many years and are the engine room of what is an excellent business,” Mr Smollen said.
McGrath has performed significantly better than the market during the year and in a strong platform on which to build in 2021, notwithstanding the ongoing impacts of COVID-19.