Real Estate Investar Group Ltd (ASX: REV) Achieves Growth in All Financial Metrics including an Increased $5.4 Million in Revenue Growth

KEY TAKEAWAYS:

• The Real Estate Investar Group Limited (REV Group) increased its revenues by 34.4% to $5.3 million. It also increased its Gross Profit Margin of 48% in 2016 from 46.9% in 2015.
• The REV Group reported a 48% growth in membership from 136,815 as of June 30, 2015 to 202,423 as of June 30, 2016. It had 218,577 members as of August 2016.
• The company considers its members a key driver of its growth as the members are monetised through direct investment property sales and paid subscriptions.

The Real Estate Investar Group Limited has noted a growth in all the financial metrics of the company with a 34.4% or $5.4 million revenue growth and an increased Gross Profit Margin of 48% in 2016 from 46.9% in 2015.

It has delivered up to $3.5 million in customer receipts and has proven to be fluid with $2.3 million cash on bank as of June last year. The company has also surpassed its Prospectus forecast on November 16, 2015, in terms of revenues, NPAT with losses down from the 2015 rate of $2.1 million to a 2016 rate of only $1 million and EBITDA with losses from 773k to $543k during the same period.

“We are particularly pleased with the growth of the business during FY 2016 and in particular during the June quarter. Growth was achieved through an extremely busy period where we listed the Company on the Australian Stock Exchange, acquired The Property Factory, negotiated new agreements with Domain Group and APM Pricefinder, and refocused the business on property sales,” Real Estate Investar Group Limited CEO Clint Greaves said.

Real Estate Investar Group Limited has also acquired The Property Factory, which Greaves said helped in accelerating its growth in the sale of investment grade property. It also entered into strategic agreements Domain Group and APM Pricefinder to help the company in the selection and marketing of the right quality of property for its members.

“We have identified a clear growth strategy that involves building our free membership base through the provision of free tools and services, and then monetising these members by providing paid subscriptions for advanced tools, by selling investment grade property, and by promoting additional products and services such as mortgages and depreciation reports,” he said.

Greaves said the company is eyeing a stronger 2017 as it strives to increase its member base, increase its revenues and improve subscriber conversion from members to paying customers.

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