John McGrath has been dubbed 'Mr Sydney real estate' for his high profile and longevity in the market. Credit:Louise Kennerley Mr McGrath said: "As the company grows rapidly it's important to focus my attention and efforts on the areas of the business that I add most value. And with an incoming executive of the calibre of Cameron Judson joining it provides a perfect opportunity to allow me to do just that." Mr Mackay said: "In its first year as a public company, McGrath experienced a challenging market environment. However, McGrath continues to be a strong and unique brand with outstanding opportunities for growth in the future. "The new board and management changes enhance an already experienced team," he said. Mr McGrath listed the stock on the ASX in December last year at a value of $2.10. He sold down half his stake to his current 26 per cent, for a reported $37 million. But in April, following issues with weak sales at its Smollen business, the shares fell to a low of 91¢, they have now recovered to close at $1.15.

The changes were announced as McGrath Ltd released its maiden profit result when Mr McGrath termed the housing market "challenging" after reporting a 7 per cent decline in its maiden profit as a listed company. The profit was $14.6 million for the year to June 30. It has been a rough ride for McGrath in its first seven months as a publicly traded company and while sales volumes are rising, boosted by the record low interest rates, the state of the housing market remains on the radar. McGrath says company-owned sales for the year came in at $7.1 billion. During the period it opened three offices and 17 franchises across NSW, Victoria and Queensland. Mr McGrath warned in April of tough times ahead, underlined by listings of sales from the company's Smollen​ Group operations, around Sydney's north and north-western suburbs, dropping between 25 and 30 per cent in January.

For the year, Mr McGrath said the Smollen business was impacted by having a concentration of offices skewed to Asian buyers, "which has affected near-term performance". The company has 91 sites across the east coast of Australia, a mix of company-owned agencies and franchises. 'Short-term industry uncertainty' "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," Mr McGrath said. "In order to achieve the long-term growth potential of the business, we will remain focused on the things that are in our control.

"The current short-term industry uncertainty creates long-term growth opportunities. As a result, we will continue to invest in the business to build long-term shareholder value." On Wednesday he added that notwithstanding the "challenging market environment for the real estate industry, given the low volume of listings and sales in the second half, the strength of our business model saw us deliver a solid result". Earnings before interest, tax and amortisation (EBITDA) fell 3 per cent to $26.2 million for the year, in line with the company's forecast range of $26 million to $27 million. The maiden 2015 fully franked dividend was 3.5¢ per share, payable September 28. In April, the group said it would make $8 million in net profit for the year to June 30, 27 per cent less than it had forecast in the share sale prospectus for its December float. A rise in auction clearances over the past few months saw revenue rise 12 per cent to $137 million, boosted by sales volumes increasing 11 per cent and the average sales price going up 3 per cent.

This was assisted by the sale of 58 properties in Millers Point, Sydney, for a total $179.9 million.