Login
ISCOVER
Mortgage Choice CEO John Flavell has defended the company’s sudden share price growth after the Australian Securities Exchange (ASX) demanded a ‘please explain’.
The group’s share price has surged by 24.7 per cent since last Thursday, prompting a letter from the ASX asking whether Mortgage Choice is “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”.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Mr Flavell said the company’s recent share price growth should be seen as an upshot of its continued strong business results.
“We have received a number of queries in relation to our growing share price, and as per our response to the ASX, I would like to state that Mortgage Choice is unaware of any material changes to the business that would be driving this growth,” he said.
“We believe the growth in our share price is simply reflective of our strong performance over the past 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.”
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.
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.”
[Related: Mortgage Choice achieves ‘strongest ever’ profit result]
