FY22 Investor Presentation
Reducing cost of doing
business as revenue grows
UNDERLYING¹
$72.7m
FY20
FY21
FY22
GCI (Fees the vendor pays
for the sale of a property)
$47.9m
$80.7m
$102.5m
$58.4m
Non Payroll Agent GCI²
($20.4m)
($35.4m)
($41.8m)
Commissions Revenue
$27.5m
$45.3m
$60.7m
Other Revenue
$14.2m
$13.1m
$12.0m
$41.7m
Revenue²
$41.7m
$58.4m
$72.7m
Operating Expenses
($20.0m)
($20.2m)
($22.0m)
Cost of Doing Business
48.0%
34.6%
30.3%
$22.0m
$20.0m
$20.2m
FY20
FY21
Revenue
—Operating Expenses
FY222
Notwithstanding we are a growth business, we are targeting further decreases in cost
of doing business ratio as we further achieve economies of scale.
Additional Fixed costs are incurred when we enter a new geographical area which
could include rental expenses, marketing expenses and state management expenses.
We are careful to ensure that any growth from entry into a new geographical market is
profitable growth, and ensure that this additional fixed cost is only incurred once we
have sufficient scale in that geographical area.
1. FY22 Underlying adjusted for the impact of AASB16 Leasing Standard. FY21 and FY20 Underlying adjusted for the impact of AASB16, Gain on Sale and Government Incentives
received in the prior period.
2. According to accounting standards, recognition of revenue is dependent on the engagement mechanism of the Agent. A sale by a payroll agent will result as revenue equal to GCI, with
an agent commission expense in Cost of Sales. A sale by a non payroll agent, revenue is equal to The Agency share pf GCI. There is no cost of sale expense for a non payroll agent.
As a general rule, Western Australia agents are predominantly Payroll agents, while East Coast agents are predominantly non payroll agents.
FY22 Investor Presentation 12View entire presentation