McGrath Ltd (ASX:MEA) expects to generate underlying EBITDA for the June 2018 financial year in the range of $5.0 million to $5.5 million.
The share price is largely unchanged, down 0.5 cents to $0.425, albeit on low volume ($30,000 shares traded at around midday).
During January 2018, McGrath told the market its FY18 EBITDA was expected to be in the range of $5.8 million to $6.8 million after one-off items.
Reduced sales volumes to blame
Management has said the impact of reduced sales volumes has affected the company more significantly than the prior forecast contemplated.
McGrath is a real estate services business, offering agency sales, property management, mortgage broking and career training services.
The company has 95 offices located throughout the east coast of Australia.
Share price has halved over recent months
Priced at $0.425, shares in McGrath are trading at nearly half the price of where they were in September 2017 ($0.81).
This is a long way below where the company started trading on the ASX after a $2.10 initial public offering (IPO) in December 2015.
Founder John McGrath gambling debt allegations
Recent negative sentiment resulting from the $25.5 million loss in the December half was further exacerbated by recent allegations that company founder John McGrath has a $16 million gambling debt.
Since the allegations surfaced, McGrath has written a letter to the ASX denying the claims.