Property and Financial Services provider, The Agency Group Australia Ltd’s (ASX: AU1) securities were placed in a trading halt today (i.e., 11 January 2019) at the request of AU1 pending an announcement by the Company regarding the settlement of the acquisition of Top Level Real Estate Pty Ltd.
As per the announcement, the trading halt will remain in place until the commencement of trading on 15 January 2019 unless before that time The Agency makes its announcement regarding the settlement of the acquisition of Top Level Real Estate Pty Ltd.
Earlier in September, the company exercised its option to acquire high-growth east coast real estate firm Top Level Real Estate. This acquisition will be a game-changer for the company as it will significantly add to the company’s property management portfolio and extensive sales pipe-line.
If the acquisition is successfully completed, the company will become the only single owner in national real estate business to have two prominent brands (The Agency and Sell Lease Property). After the acquisition, the company will have a strong footprint in the Perth and Sydney residential property markets.
In October 2018, the company released its Notice of Meeting for the purpose of seeking approval to the acquisition, following which the director finalized the prospectus for the offer of AU1 shares to the Top Level shareholders in accordance with the agreed terms for the acquisition of Top Level.
In November 2018, the company lodged a Prospectus with ASIC, to issue 18.33 million fully paid ordinary shares to the shareholders of Top Level to acquire all the shares of Top Level. As per the recent announcement of the company, the settlement date of the acquisition was on 11 January 2019
The company is exploring additional acquisition opportunities in order to grow its overall property portfolio.
In September quarter the company earned a total revenue of $5.3mn which was 50% higher than the corresponding previous period. In the financial year 2018, the company reported 75 percent growth in combined revenue by reporting $16.8 million in combined revenues for FY 2018 which was $9.6 million in FY2017. By division, The Agency’s (WA operations) revenue increased by 66 percent to $8.86 million in FY 2018 as compared to the previous corresponding year. Further, the company’s Property Management reported revenue growth of 354 percent in FY 2018.
As at 30 September 2018, the company had Net cash from operating activities of $161K, net cash used in investing activities of $385K and cash and cash equivalent of $798K.
During the past one year, the company has yielded a negative return of 58.52% by decreasing from $0.337 on 10 January 2018 to $0.140 on 10 January 2019. AU1’s shares last traded at $0.140 with a market capitalization of circa $5.11 million as on 11 January 2019 (AEST 4:00 PM).
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