McGrath Ltd. lowered its financial expectations for the fiscal year ending June 30 and disclosed a plan "to return the company to growth."
The Australian integrated real estate services provider said underlying EBITDA for fiscal full-year 2018 will be in the A$5.0 million to A$5.5 million, based on its A$720,000 underlying EBITDA for the eight months ended Feb. 28 and the current run rate. Given the approximately A$4 million in one-off cash costs, EBITDA for fiscal 2018 is expected to be between A$1.0 million and A$1.5 million.
Earlier, the company said it expected full-year EBITDA of between A$5.8 million and A$6.8 million, translating to underlying earnings of A$10.6 million to A$11.6 million.
Commenting on the revised forecast, CEO Geoff Lucas said reduced sales volumes affected the company "more significantly" than the company had anticipated when it made the prior forecast. The real estate agency's new CEO also said that "this period is behind [them]" and current activity levels are generating better results.
McGrath also added that its board is working on a refocused strategic plan that will center on three initiatives: the implementation of the right corporate office structure, recruitment of new franchisees and agents, and the continued introduction of training and development and systems.
