August 24, 2013
Yew Kong Lye
Mortgage Choice Limited (MOC) today announced a strong, above-target financial result for the financial year ended 30 June 2013.
This solid result continues to reflect the Group’s disciplined investment in our diversified businesses.
Financial highlights for the 12 months to 30 June 2013
- NPAT on a cash basis was $15.8 million, an increase of 5.0% on FY12.
- Total group revenue on a cash basis was $150.0 million, up 4.2% on FY12. The business’ cash gross profit rose to $57 million, a rise of 6% on FY12.
- Total loan book, ie. loans written by mortgage brokers in its franchise network and its aggregation arm, LoanKit, reached $47.7 billion. This was up 5.8% from $45.1 billion at 30 June 2012.
- $11.9 billion worth of housing loan approvals were written by the Group in the year, up from $11.2 billion in FY12. Mortgage Choice’s core business loan approvals were $10.4 billion, up from $10.1 billion in FY12.
- Annual share of new home loans remained at 4.6%. Mortgage Choice core business market share was 4.0%, down by 0.2% on FY12.
- A fully franked final dividend of 7 cents per share was declared by the Board, which takes the total dividends for the year to 13 cents per share, the same as FY12.
IFRS highlights for the 12 months to 30 June 2013
- Group net profit after tax (NPAT) was $18.7 million, up 1.4% on $18.5 million in FY12.
- Earnings per share stood at 15.2 cents compared to 15.4 cents in FY12.
- Total group revenue was $156.5 million, down 0.3% on FY12.
Mortgage Choice CEO Michael Russell said, “Delivering solid, above target results for this financial year, the Mortgage Choice Group has exceeded many of its financial goals. We continue to deliver profit growth in our core business of mortgage broking whilst investing for the future in our diversified businesses.
”“Shareholders will be pleased yet again with the dividend result, which is equal to that received in FY12 - a fully franked dividend of 13 cents per share.”
Financial and operational performance
Company revenue showed improvements on FY12 with the group loan book growing 5.8% to reach $47.7 billion, home loan approvals increasing by 5.9% to $11.9 billion, settlements rising by 5.1% to $10.2 billion and group market share steady at 4.6% for all new home loans written.
Mr Russell said, “We are pleased to report a 5% increase year on year in cash profit after tax, which takes into account our after-tax investment in our exciting new financial planning business.”“
Our core mortgage broking business also achieved a solid result, posting its best cash result on record and the highest annual settlements since 2010. At the same time we expanded the network of mortgage brokers by 2.3% to reach a franchise footprint of 395, the highest count since February 2009.
“These are all excellent results, which were achieved while operating in a period of dampened consumer and business confidence.“
Looking forward to a more positive outlook for FY14, we are expecting an uplift in confidence. The property market is already showing signs of improvement in terms of property price growth, strong auction clearance rates and steady increases in housing finance commitments, which is reflected in our recent, strong home loan approvals.”
The Group continued to invest for the future in its diversified businesses, aggregator
LoanKit, comparison website HelpMeChoose.com.au, and the new Mortgage Choice Financial Planning business.LoanKit has continued to show a marked improvement year on year with regards to the settlement number, loan book growth and recruitment count. However, the Group has accepted a binding term sheet to sell LoanKit. This will enable management to further focus on its core mortgage broking business, HelpMeChoose.com.au and Mortgage Choice Financial Planning.
HelpMeChoose.com.au continues to go from strength to strength with a 61% improvement in NPAT on a cash basis in FY13.“
We are excited about the HelpMeChoose.com.au business and its capacity for growth,” said Mr Russell.
The financial planning business has also achieved its key performance goals, having successfully recruited in FY13, 11 advisers against a target of 8 to 10.“
The progress of Mortgage Choice Financial Planning is very pleasing. We have a unique proposition for our franchisees, advisers and customers and we are looking forward to a consumer launch in the not too distant future,” Mr Russell said.
Mr Russell concluded by commenting, “We remain focused on executing our ACT strategy, building a compelling and differentiated customer experience and providing sustainable earnings for our shareholders.