February 26, 2014
Mortgage Choice Limited (MOC) has today announced its results for the six months ending 31 December 2013.
Today's results are Mortgage Choice's strongest interim figures to date and were largely buoyed by the improving conditions in the property market.
Financial highlights for the six months to 31 December 2013
- On an IFRS basis:
- Group net profit after tax (NPAT) was $9.7 million, up 28.5% on $ 7.5 million in 1H13. Group net profit after tax (NPAT) including sale of Loankit was $11.0 million, up 46.4% on 1H13
- Earnings per share at 7.9 cents for continuing business (8.9 cents including both continuing and discontinued businesses) compared to 6.4 cents in 1H13.
- Total group revenue was $87.8 million, up 18.3% on 1H13. Total group revenue including the gain on sale of Loankit was $89.4 million, up 20.5% on 1H13.
- NPAT on a cash basis was $9.0 million, an increase of 14.7% on 1H13. NPAT including sale of LoanKit on a cash basis was $10.3 million, an increase of 31.9% on 1H13.
- Total loan book reached $46.4 billion. This was up 4.4% from $44.4 billion at 31 December 2012.
- $6.2 billion worth of housing loan approvals were written in the year, up from $5.1 billion in 1H13.
- Annual share of new home loans stood at 3.9%, on par with 1H13.
- A fully franked interim dividend of 7.5 cents per share (which includes the sale of LoanKit) was declared by the Board, up from 1H13 of 6.0 cents.
- Total group revenue on a cash basis was $83.7 million, up 11.5% on 1H13. Total group revenue including sale of Loankit on a cash basis was $85.4 million, up 13.8% on 1H13
- The business' cash gross profit rose to $31.0 million, a rise of 9.1% on 1H13.
Mortgage Choice CEO Michael Russell said the results were incredibly pleasing and suggests the company's ongoing commitment to building a diversified financial services business is starting to pay dividends.
“This is our strongest interim profit result on record and is an exciting achievement for all of our stakeholders. Moving forward, we expect the number of loan settlements to be even higher over the coming six months, buoyed by strong conditions in the housing market and historically low interest rates,” he said.
Financial and operational performance
Company revenue showed improvements in 1H14 with loan book growing 4.4% to reach $46.4 billion, home loan approvals increasing by 21.6% to $6.2 billion, settlements rising by 18.8% to $5.3 billion and market share steady at 3.9% for all new home loans written.
“To see more than 20% growth in our approval numbers in comparison to this time last year is a pleasing reward for our franchise network who have worked tirelessly in the face of challenging market conditions since 2008,” Mr Russell said.
“On top of that, to see almost 19% growth in our settlement numbers is equally rewarding. Moving forward, with interest rates sitting at historical lows and lenders competing hard for new mortgage customers, I am confident that we can improve on these results.
“Our network of brokers are achieving best ever productivity levels, and with housing undersupply keeping heat in the property market, we expect them to become even busier in the months ahead. As such, our outlook for housing loan approvals for the remainder of FY14 and FY15 remains positive.
“As for Mortgage Choice Financial Planning, we are currently on track to meet our Mortgage Choice Financial Planning recruitment target of 60 advisers by the end of 2015. Already, we have 25 advisers on board and this number continues to grow every month. The high calibre of advisers we are bringing on board complements our experienced franchise network, so I can safely say we are all excited to see what the future holds for this business,” Mr Russell said.
For further information or to arrange an interview, please contact:
Mortgage Choice Corporate Affairs
(02) 8907 0502 / 0448 240 047
(02) 9818 9334 / 0434 975 868
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.