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Yellow Brick Road has expanded its branch network by more than 20 per cent but continues to operate at a loss.
The group announced an $800,000 net operating deficit for the three months to 30 June 2014 – a 12.2 per cent improvement on the $900,000 deficit recorded the year before.
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The underlying net deficit was only $630,000 after costs associated with arranging the acquisitions of Vow Financial and Resi Mortgage Corporation were excluded.
However, the actual costs of the combined $53.6 million acquisitions weren’t included in the quarterly results, because the deals still have to be approved at a shareholder meeting on August 27.
Yellow Brick Road also posted $7.1 million of customer receipts, which represented 18.3 per cent growth.
“On a standalone basis Yellow Brick Road had a solid fourth quarter supported by revenue uplifts in all divisions,” according to the group.
“This included a strong month in June where mortgage settlements and wealth management revenue were both at the highest levels recorded. The June quarter was the strongest cash flow result for the company since inception three years ago.”
Yellow Brick Road also reported a 22.6 per cent increase in its branch network over the year after expanding from 168 branches to 206.
“Expansion into key markets continues, including new branches in Hervey Bay and Cairns and the launch of Yellow Brick Road in the Northern Territory with new agreements for Darwin, Casuarina and Palmerston,” the group said.
Yellow Brick Road has recorded successive annual losses since 2007/2008.
[Related: YBR posts big revenue gains]
