Appendix 4C - Quarterly and commentary
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ASX MARKET RELEASE
31st July 2018
June Quarter 2018 Update
Strong Quarter Results – Cash Receipts Up 60% for the Quarter
Highlights
June Quarter
• Cash receipts for June Quarter were up 60% from March Quarter to $6.7m which includes first
full quarter of SLP
• Annual Group revenue has grown over 60% for the year end to $16m
• The Agency (Real Estate Group) on track for over 100% growth – excluding SLP
• Investment of $642k has been used towards acquisitions such as Beaufort, Inglewood and SLP
The Agency (West Coast)
• The Agency Group (WA) – total revenue of $5.5m for June Quarter 2018
• The Agency WA (gross sale commissions only) –$2.3m for June Quarter 2018
• SLP (gross sale commissions only) - $1.8m for June Quarter
• The Agency and SLP continue to rank as top offices in WA (REIWA to announce total annual in
August)
Corporate
• Exclusive Option Agreement to acquire Top Level Real Estate extended until 11 th October 2018
• Management teams working together on the structure of the transaction
• Negotiations progressing with top-tier advisers to raise additional funds
• Additional acquisition opportunities nationally also being explored
* Please note all revenue figures listed are unaudited
The Agency Group Australia (ASX: AU1) (“The Agency” or “the Company”), is pleased to provide an
update for the June Quarter 2018, another successful quarter in which the Company continues to
achieve its stated goal of being the fastest growing real estate brand.
The Agency Group (WA) core business units posted strong results for the June Quarter. The Agency real
estate sales posted gross sale commission income of $2.3m while SLP posted $1.8m totalling $4.1m of
gross sale commissions income for the June Quarter.
The Agency Property Management reported quarterly income of $342k, up 25% quarter-on-quarter.
Mortgage and Financial Solutions Australia posted over $31m in loan lodgements and revenue of $680k
for the quarter.
Landmark Settlement recorded 225 settlements for the quarter, bringing in just over $261k.
WA Expansion Continues
During the quarter, The Agency acquired established Inglewood Real Estate which has a strong market
share in Inglewood and surrounding area and adds approximately 80 property managements to The
Agency Group.
SLP – Achieves Strong Quarter
In its first full quarter since acquisition in March 2018, Sell Lease Property delivered robust results
during the June Quarter 2018 including 180 properties settled and 245 listings.
Full year results for Top Office in Western Australia are to be announced by REIWA in August.
National Expansion
During the June Quarter, The Agency announced an extension to the Amended and Restated Binding
Option Agreement to acquire Top Level Real Estate Pty Ltd (refer to ASX announcement dated 12
February 2018 for further information).
The Option Agreement has been extended for four (4) months from 11th June 2018 (the date on which
the Deed of Variation was executed) until on or before 5pm AEST on 11th October 2018.
Under the terms of the Deed, the completion of a raising of no less than $10m (A Condition Precedent
under the Option Agreement) has been extended until 5pm AEST on 11th August 2018 or at a later date
agreed to by all parties.
Management teams of both The Agency and Top Level are continuing to work together on the structure
of the transaction.
Meanwhile, negotiations with top-tier fundraisers are progressing well in regards to a revised funding
arrangement.
The Company will provide an update to shareholders imminent on the outcome of these discussions.
If you require further information, please contact:
Investors
The Agency Australia Ltd
Paul Niardone
T: +61 08 9204 7955
Media
Chapter One Advisors
David Tasker / Colin Jacoby
T: +61 433 112 936 / +61 439 980 359
Appendix 4C
Quarterly report for entities subject to Listing Rule 4.7B
+Rule 4.7B
Appendix 4C
Quarterly report for entities subject to Listing Rule 4.7B
Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16
Name of entity
The Agency Group Australia Limited
ABN Quarter ended (“current quarter”)
52 118 913 232 30 June 2018
Consolidated statement of cash flows Current quarter Year to date
$A’000 $A’000
1. Cash flows from operating activities
1.1 Receipts from customers 6,660 18,141
1.2 Payments for
(a) research and development - (17)
(b) product manufacturing and operating (4,411) (10,080)
costs
(c) advertising and marketing (32) (157)
(d) leased assets (4) (85)
(e) staff costs (1,825) (8,105)
(f) administration and corporate costs (357) (1,609)
1.3 Dividends received (see note 3) - -
1.4 Interest received 1 5
1.5 Interest and other costs of finance paid (49) (49)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other - -
1.9 Net cash from / (used in) operating
(17) (1,956)
activities
+ See chapter 19 for defined terms
1 September 2016 Page 1
Appendix 4C
Quarterly report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows Current quarter Year to date
$A’000 $A’000
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (104) (826)
(b) businesses (see item 10) - -
(c) investments (642) (1,062)
(d) intellectual property - -
(e) other non-current assets - -
2.2 Proceeds from disposal of:
(a) property, plant and equipment - -
(b) businesses (see item 10) - -
(c) investments - -
(d) intellectual property - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other – Cash acquired on acquisition of - -
businesses
2.6 Net cash from / (used in) investing (746) (1,888)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares - 1,920
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of - -
shares, convertible notes or options
3.5 Proceeds from borrowings 1,100 1,100
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and - -
borrowings
3.8 Dividends paid - -
3.9 Other (over subscriptions share placement) - 70
3.10 Net cash from / (used in) financing
1,100 3,090
activities
+ See chapter 19 for defined terms
1 September 2016 Page 2
Appendix 4C
Quarterly report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows Current quarter Year to date
$A’000 $A’000
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
quarter/year to date 1,112 2,203
4.2 Net cash from / (used in) operating (17) (1,939)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities (746) (1,142)
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 1,100 1,990
(item 3.10 above)
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of
1,449 1,112
quarter
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 1,045 706
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (Bank Guarantees) 404 406
5.5 Cash and cash equivalents at end of
1,449 1,112
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 84
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Director salary $50k
Director fees $34k
+ See chapter 19 for defined terms
1 September 2016 Page 3
Appendix 4C
Quarterly report for entities subject to Listing Rule 4.7B
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities - -
8.2 Credit standby arrangements - -
8.3 Other (please specify) - -
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
9. Estimated cash outflows for next quarter $A’000
9.1 Research and development -
9.2 Product manufacturing and operating costs (4,300)
9.3 Advertising and marketing (30)
9.4 Leased assets (6)
9.5 Staff costs (1,900)
9.6 Administration and corporate costs (410)
9.7 Other (Bank Guarantee and Rental deposit) -
9.8 Total estimated cash outflows (6,646)
+ See chapter 19 for defined terms
1 September 2016 Page 4
Appendix 4C
Quarterly report for entities subject to Listing Rule 4.7B
10. Acquisitions and disposals of Acquisitions Disposals
business entities
(items 2.1(b) and 2.2(b) above)
10.1 Name of entity Nil Nil
10.2 Place of incorporation or
registration
10.3 Consideration for acquisition or
disposal
10.4 Total net assets
10.5 Nature of business
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 31 July 2018
Company Secretary
Print name: Stuart Usher
Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities have been
financed for the past quarter and the effect on its cash position. An entity that wishes to disclose
additional information is encouraged to do so, in a note or notes included in or attached to this
report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards,
the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If
this quarterly report has been prepared in accordance with other accounting standards agreed by
ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this
report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows
from investing activities, depending on the accounting policy of the entity.
+ See chapter 19 for defined terms
1 September 2016 Page 5