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Founder hands over control of McGrath

AAP logoAAP 23/08/2016

John McGrath is relinquishing day-to-day control of the real estate company he founded 28 years ago.

In the company's first earnings report since floating on the share market in December, McGrath reported an annual profit of $8.4 million, and announced the appointment of Cameron Judson as sole chief executive.

That will leave Mr McGrath to focus on brand, growth and innovation.

"As the company grows rapidly, it's important to focus my attention and efforts on the areas of the business (to which) I add most value," Mr McGrath said.

"With an incoming executive of the calibre of Cameron Judson joining, it provides a perfect opportunity to allow me to do just that."

Mr Judson joined Mr McGrath as joint CEO in June, and takes sole charge on Thursday.

While McGrath's statutory net profit rose 19.5 per cent, its pro-forma profit - the company's preferred measure of performance - declined 6.8 per cent to $14.6 million.

Nonetheless, Mr Judson said he was confident in the company's future.

"While short term market conditions remain challenging, the long term fundamentals of the real estate industry remain attractive, underpinned by historically low interest rates, population growth and the strength of the asset class generally," he said.

Investors appeared to agree, with shares in McGrath gaining 6.5 cents, or 5.8 per cent, to $1.185.

MCGRATH'S FIRST RESULTS AS A LISTED ENTITY

* Net profit up 19.5pct to $8.4m

* Revenue up 40.9pct to $121m

* Pro forma profit down 6.8pct to $14.6m

* Pro forma revenue up 12pct to $137m

* Final dividend 3.5 cents, fully franked

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