McGrath's (ASX:MEA) profit turns around, CEO departs

Company News

by Anna Napoli

Property agency McGrath (ASX:MEA) has seen a turnaround in its fortunes with net profit swinging from a $9.7 million loss in FY19 to $700 000 this financial year.
Earnings of $3.7 were up $10.1 million from a loss of $6.4 million last financial year.

The group posted an 11 per cent lift in revenue to $91.69 million for the year and a 31 per cent rise in sales per agent for the period, despite the negative effects of the COVID pandemic on the residential property sector in the last quarter.

The company says “We are pleased with the $10 million turnaround, a return to after-tax profit and further strengthening of our balance sheet with $17.3 million in cash. Our business performed significantly better than the market during the year and we have a strong platform on which to build in 2021, notwithstanding the ongoing impacts of COVID.”

The group also revealed chief executive Geoff Lucas has resigned effective immediately with Edward Law his replacement.

And the market likes the results shares in McGrath (ASX:MEA) are trading 15.79 per cent higher at 22 cents.