McGrath posts $2.5m loss on back of tough market conditions

Company News

by Anna Napoli

McGrath (ASX:MEA) has announced its 1HFY19 result has been impacted by subdued property market conditions, resulting in an underlying earnings EBITDA loss of $2.5 million.

Meantime, the company reported underlying net profit NPAT loss of $3.3 million from $1.8 million for the year earlier period.

Half year revenue declined 18 per cent to $42.5 million.

McGrath CEO, Geoff Lucas says sales conditions were worsened by a reduction in transaction volumes with settled sales for the real estate sector nationally down 13.2 per cent.

Underlying earnings guidance for the second half of FY19 are expected to be impacted by ongoing difficult trading conditions.

The board says it remains focused on conserving cash for business reinvestment and will not pay an interim FY19 dividend.

Shares in McGrath (ASX:MEA) are trading flat at 26 cents.

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