Powered by MOMENTUM MEDIA
subscribe to our newsletter

Mortgage Choice questioned over share price

Mortgage Choice has responded to a query by the Australian Securities Exchange (ASX) regarding recent trading of the company’s securities.

The broking group received a letter from the ASX today about a change in the price of its securities.

“Is the entity aware of any information concerning it that has not been announced to the market, which, if known by some in the market, could explain the recent trading in its securities?” the letter read.

In response, Mortgage Choice said it was “not aware of any information that its earnings for the 12-month period ending on 30 June 2016 are likely to come as a surprise to the market either by reference to analyst forecasts for the period or its earnings for the prior corresponding period”.

Mortgage Choice’s share price has surged by 24.7 per cent since last Thursday morning, 16 June. As of 2pm today, the company’s share price was sitting at $2.12, up more than 6 per cent since the start of trading.

Advertisement
Advertisement

John Flavell, CEO of Mortgage Choice, said the company's recent share price growth is simply reflective of its strong performance over the last 12 months.

“At the half-year financial results, we reported a 12.4 per cent increase in cash net profit after tax in comparison to the prior corresponding period," he said.

Since then, Mr Flavell said Mortgage Choice has continued to deliver exceptionally strong business results.

“In March, we reported that continued revenue growth and prudent expense management had resulted in the Mortgage Choice Financial Planning division delivering its first profitable monthly result,” he said.

“Since then, the proportion of recurring revenue coming from ongoing advice fees and insurance renewal premiums has continued to grow strongly, allowing the financial planning business to turn its second monthly profit result.

PROMOTED CONTENT


Mr Flavell is confident Mortgage Choice’s positive results “are repeatable” due to the continued growth in new business across the company.

“I think it is also important to note that in recent years, Mortgage Choice’s share price has tracked well in excess of our current pricing.”

Mortgage Choice questioned over share price
mortgagebusiness

Latest News

The value of mortgage approvals swelled to a new record high in November, surpassing $24 billion, the ABS has found. ...

The construction of new homes in Australia is forecast to “get worse before it gets better”, according to Deloitte Access Economics, but...

The non-major bank has made an appointment to the newly created role of group general counsel and company secretary. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.