Yellow Brick Road has posted a 49 per cent increase in mortgage settlements for the 12 months to June 30.
The wealth management company’s mortgage revenue grew 33 per cent over the same period, bringing its total loan boom to $2.68 billion.
While the company recorded a $5.139 million loss, this was a 12 per cent reduction from the previous financial year and YBR is expected to move into profitable territory over the next 12 months, according to an ASX statement.
YBR said it had now completed its establishment phase and, following the recent acquisition of Vow and Resi, would use its scale to track toward ongoing and sustainable profitability.
“Notwithstanding the acquisitions and the opportunities they represent in relation to the broader strategy of the group, the focus for Yellow Brick Road as a standalone business will be to continue the growth path of the branch network,” it said.
“The culmination of this strategy is to get the group to profitability in 2014/2015.
“Yellow Brick Road’s current trajectory, combined with the existing profitability that both Resi and Vow bring to the organisation, means that the group will have scope for strong growth well into the future.”
A $13.835 million funding facility from CBA will be used to refinance the group’s existing $5 million facility and fund any future acquisitions, according to an August 27 ASX statement.