McGrath stabilises in 2018 with growth in sight

By Trevor Hoey. Published at Aug 20, 2018, in Special Reports

Name: McGrath Limited (ASX:MEA)

Market Capitalisation: $64 million

Opening Share Price: 38 cents

Real estate group, McGrath Ltd has delivered underlying EBITDA of $5.0 million for fiscal 2018, a result that is in line with management’s guidance.

This should be well received by the market given that the company had disappointed in the past by not meeting expectations.

The company’s shares increased approximately 4% in early morning trading, hitting a high of 39.5 cents.

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

McGrath has grown to be an integrated real estate services business, offering agency sales, property management, mortgage broking and career training services.

The estate agency network area of the company’s business currently operates 94 offices located throughout the east coast of Australia.

Management highlighted that the core fundamentals of McGrath are robust.

From an operational perspective the group has one of Australia’s leading sales agency teams that span a broad network and its brand is well recognised.

After a period of instability, a new operational plan was instigated, and it is showing early signs of positive momentum, repositioning the business for a return to growth.

In keeping with this message, in delivering its outlook statement management has forecast a return to growth in fiscal 2019.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn