Mortgage technology solutions help Rubik grow revenue

Rubik Financial has posted solid revenue growth for 2014-15 with mortgage solutions contributing over $7 million to the group’s total income.

The group increased its overall revenue by 27 per cent to $38.8 million for the 12 months to 30 June 2015, with recurring revenues up by 31 per cent.

Revenue for wealth solutions increased by five per cent to $21.0 million, contributing 54 per cent of overall revenue, while banking increased by seven per cent to $10.5 million, contributing 27 per cent of overall revenue.

Mortgage solutions contributed 19 per cent of total revenue ($7.2 million), reflecting the first full year of trading under Rubik.

Segment profits for the group were $8.2 million, and remained stable year-on-year, while operating cash flow dropped to -$0.6 million, and net loss after tax was $14.5 million.

Rubik chairman Craig Coleman said prior to this financial year, the group acquired a number of fintech software products with attractive client incumbency and known contracted revenues.

“During this past year, we have focused our investment into fully integrating and restructuring acquisitions into one company with a sound and scalable operational footing. We have also significantly improved the executive and management talent in the company,” he said.

“Importantly during this period of internal restructure, we retained and extended all of our key client contracts. While this activity and investment has resulted in short-term, but largely one-off, cost implications, the outcome is a company far better positioned to achieve future revenue and margin growth.”

Rubik CEO Iain Dunstan agreed that while the company has experienced some material change over the past 12 months, what it accomplished in the first half of 2015 has positioned it well for the future.

“This past year has seen us establish a new leadership team, move from a product to a strategic, functional focus, and integrate the AMEE, Stargate and Infinitive acquisitions undertaken the previous financial year, including consolidating our corporate structure and data centre infrastructure,” he said.

“Improved use of technology impacting regulatory compliance, efficiency and client engagement, the rise of scaled advice, market appetite for changes in the banking industry, a greater emphasis on digital and the uptake of software as a service will be key drivers in the financial services marketplace over the coming year, and Rubik intend[s] to further develop and integrate our software to leverage off these opportunities.”

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