SVTs (aka SLP) problem was they weren't clipping sufficiently...

SVTs (aka SLP) problem was they weren't clipping sufficiently (from the agent sales) to pay for the listed companies obscene outgoings. It seemed the fees they were asking of agents were less comparably than that of a very similar scale+style unlisted agency run by americans on the eastern seaboard.

Should there be an AU1 acquisition I see the potential for the SLP brand and agent operations to continue. They will need to incrementally ask for increased fee income from agents, and reducing the shedload of outgoings on layers of staff that will help neutralise cash flow.

Ratemyagent.com.au reports
12 month total real estate sales in WA for
SLP: $338M
AU1: $273M

If 100% of agents continue with SLP (est gross commission @2% of sales: $6.7M) with a lift in fees to say @ effective ~15% commission clip that's $1M annual revenue.

This doesn't include any rent roll or the marketshare SLP have earned recently into other states like QLD and VIC.

And then there's the prospect revenue from these 200+ SLP agents bringing more money through the mortgage referral scheme already in place with AU1.

If AU1 snaffles this kind of instant scale for $500k or so into the just now UPTURNING W.A RE Market (after a massive three-four year downturn) AU1 could be onto a well timed opportunistic winner here.

Getting SLP operations near instantly to cash flow neutral should be the objective if the SLP+agents becomes the eventuated acquisition.

Hopefully SLP is not a distraction to the Top Level option that will surely not be happening until early next year now.