McGrath, the ASX-listed real estate agency which just cleaned out its board of directors and replaced the CEO, has decided its full year profit won’t be as good as expected.

The company, which has been working to reverse a slide in revenue, now expects to generate underlying earnings for the full financial year in the range of $5 million to $5.5 million, before $4 million in expected one‐off cash costs. Previously the company estimated earnings between $10.6 million and $11.6 million.

A short time ago, the company’s shares were down 1.1% to $0.425. The company floated in December 2015 at $2.10.

The company says it generated underlying EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) for the eight months to the end of February of $720,000, before $3.2 million of one‐off costs.

Last month John McGrath, the salesman who founded the real estate agency, revealed his new board of directors — lawyer Andrew Robinson and former CFO Peter Lewis — and a new Chief Executive Officer, Geoff Lucas, a former Chief Operating Officer of McGrath.

The newly appointed Board and CEO have conducted an initial review of the company’s accounts and operations.

“It is important that the market is aware of the right baseline financial position that appropriately reflects the current status of the McGrath business and trading conditions,” says Lucas.

“The impact of reduced sales volumes has affected the company more significantly than the prior forecast contemplated. We are pleased that this period is behind us, and are encouraged by current activity levels generating improved results.

“The cost cutting program put in place late last year is starting to generate the financial benefits expected, and we are seeing an uplift in performance so far this month, with expectations of continued rebuilding to the end of this financial year.”

The agency last month posted a half year loss of $25.5 million after impairments of $22.9 million to goodwill. Revenue fell 23% to $51.6 million for the half year to December.

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