ASX listed real estate agency, McGrath is slowly on the rebuild after the company announced a $63 million net loss for the 2018 year.

The agency wrote-off all goodwill related to company-owned agencies, accounting for $57 million of the full $59 million impairment.

In a year that saw the appointment of a new board, new chief executive and reports of franchisee dissatisfaction, McGrath also booked a 23 per cent fall in revenue to $99 million, down from $129 million the previous year.

Despite the poor results, the inclusion of franchise properties under management provided a steadying force, with the group’s rent roll hovering at around 33,000, up from 32,000 in 2017.

As housing prices continue to weaken, the overwhelming outlook is not positive for McGrath, however management suggested the joint venture with Aqualand and a refocus of company operations would provide greater stability in future endeavours.

Speaking with the Australian Financial Review, McGrath chief executive, Geoff Lucas said moving forward, the company would be focusing attention on building its franchise network.

“Our strategic plan has, as its centrepiece, the goal of growing McGrath’s franchised and company offices across Australia over the next five years,” Lucas said.

“While the current property market conditions are challenging, we believe this will continue to generate some very real opportunities as more agencies and salespeople will be seeking to join larger, well capitalised, quality branded groups like McGrath. Company-owned agent numbers returned to growth over the fourth quarter of 2018 and that trend has continued into 2019.”

Lucas, who was one of McGrath’s original senior management members before leaving the company in 2016 was promptly reinstated earlier this year, tasked with repairing the failing agent numbers and difficulties with franchise operations.

His first win came in June when it was announced that Chinese developer Aqualand had acquired a 15 per cent stake in the company, making it McGrath’s second largest investor behind founder John McGrath.

Since then, agent resignations have slowed to a halt with the total number of agents at 560 nationwide.