Despite a difficult year in the residential property market, real-estate and agribusiness Elders has reported strong growth for the 2018 financial year.

The ASX-listed company announced a five per cent rise in underlying earnings before tax to $74.6m on Tuesday, compared to last year.

Mark Allison, Elders’ chief executive officer and managing director attributed the company’s growth to its continued commitment to strategic priorities outlined in Elder’s ‘Eight Point Plan’.

“Since 2014, the ‘Eight Point Plan’ has provided clear, consistent direction. It identifies sustainable competitive advantages as a pure-play agribusiness, by product and geography, and anchors our future growth and development on these advantages,” Allison said.

“In FY18, overall the Retail business posted a $14.5m margin improvement, contributed by acquisition growth in horticulture and organic growth in Southern Australia.”

While agricultural efforts remain a primary focus for Elders, the end of year results indicate the company’s decision to invest heavily in franchised real estate services has paid off.

Elders operates 128 franchises across Australia, with offices in both major population centres and regional areas, offering traditional agency and property management services, as well as water and home loan broking.

Allison said Elders’ real estate success had come largely at the hands of South Australia, which contributed $1.3m of the total increase in profit.

“Real Estate margin improved by $1.7m to $33.6m with the increase from footprint expansion offset by subdued activity in key residential markets,” he said.

The release of Elders’ FY18 results also boosted shares in the company, with Elders’ share price skyrocketing almost 20 per cent, before levelling out.

Allison suggested Elders’ strong performance over the financial year was a sign of things to come, promising continued innovation and a commitment to clients and franchisees.

“Looking ahead to 2020 and beyond, we will continue to demonstrate our strength in portfolio management, geographical segmenting, our core products, innovation, our commitment to Australian agribusiness and our clients.”

“It is evident that our people wear the pink shirt with pride in each of the communities in which we operate, and I thank each and every one of our employees for their dedication throughout FY18.”