RESIDENTIAL rental property manager Run Property has continued to be in bad form – loosing its legal battle against McGrath and now posting another weak result in FY08.
RUN has announced a net loss of $5.20 million – which is an improvement on last year’s net loss of $17.05 million.
However this year revenue increased to $29.22 million from $25.27 million and the were no impairments unlike last year when Run wrote off $7.61 million.
Run’s chief executive Rob Farmer said that the company has successfully achieved four key goals which were:
– further reduction in business operating costs;
– improvement in customer service levels;
– integration of Run Property’s
– commercialisation of an industry solution enabling other real estate agents to outsource their trust accounting and technology functions.
The downer for the year was the company’s failed legal battle against John McGrath, a former director of the company.
In February, Run and McGrath settled the matter and decided to terminate their strategic alliance.
Under the terms of the settlement McGrath was entitled to recommence property management activities in late April 2008. The net settlement benefit to RUN Property of $1.28 million is included in EBITDA.
At June 30, the company had bank debt of $36 million with $2.63 million cash on deposit. In addition the company had $4 million available under its $40 million facility.
Farmer said that they key areas of focus over the coming 12 months were to continue to execute on growth activities; improve operating costs and efficiency; and implement strategies to further reduce debt.
“We expect to see continued strength in the rental market with low vacancies, fast re-lets and increased rents,” he concluded.
Australian Property Journal