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Brokerage on acquisition path following strong quarter

by James Mitchell4 minute read

An ASX-listed diversified brokerage is on the hunt for acquisition opportunities after posting strong growth over the final quarter of the 2017 financial year.

N1 Holdings, which was ranked 12th in The Adviser’s Top 25 Brokerages this year, posted record quarterly customer cash receipts over the three months to 30 June and saw its loan book grow to $799 million.

The company also noted that 87 per cent of its trail income had been retained. N1 confirmed that it is still seeking acquisition opportunities.

“N1 has achieved record quarterly customer cash receipts despite challenging lending environment,” the group said in a trading update.

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“Regulators’ recent initiatives of curbing investment lending and interest-only loans have led to expected subdued new lending growth across the industry. Despite this, N1 Loans bucked the trend to achieve impressive loan book growth.”

Over Q4 FY17, N1 increased its operating cash inflows by 14.95 per cent compared to Q3 FY17.

“Strong recurring cash inflow via loan book trail income and monthly incremental due to new loans settled is expected to further strengthen the company’s cash flow position,” the group said.

In addition to traditional mortgage broking services, N1 has diversified into migration and real estate, both of which saw impressive growth over the quarter.

Revenue from N1 Realty increased by 312.72 per cent, with the business achieving a record quarter of $271,500 in earnings. Meanwhile, N1 Migration grew its revenue by 489.43 per cent.

[Related: Top 25 brokerages in Australia revealed]

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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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