Via The Australian:
The company has been caught up in a storm of falling volumes and auction clearance rates as well as an exodus of high-performing agents and the loss of key offices, including on Sydney’s wealthy north shore.
The company’s shares fell by about 7.7 per cent to 24c yesterday as the investors digested the news the once high-flying agency had fallen to an underlying earnings loss for the eight months to the end of February of $4.5 million and worse may be to come if conditions remain tough.
Rival agencies have picked off some of the listed real estate firm’s agents, with McGrath’s lower north shore franchise switching allegiance to Di Jones last month, but the firm has argued it has also hired new staff and its founder is back selling property and bolstering sales after a tumultuous period running the company.
It ain’t working, now -89% from float:
The handsome John McGrath will be able to buy it back shortly. At $40m market cap the entire firm is now worth only $3m more than the $37m he took out after the float.
Never trust a real estate agent.
