Yellow Brick Road (YBR) posted a loss of $6.6 million in its annual report for the year to June, largely due to a growth in commissions, consultancy fees and other expenses and despite a 68.4% revenue increase to $24,880,000.
The company’s most expensive item, commissions and consultancies fees, increased by 119% alone.
However, YBR executive chairman, Mark Bouris, maintains a positive attitude towards the overall results, claiming that the company’s management team kept overheads flat ‘when you consider the growth that we have experienced’.
“2013 was very important from a product manufacturing point of view. Our origination agreement with Macquarie Bank assists us to competitively market mortgages and other products under the Yellow Brick Road banner,” he says in the annual report, released this week.
“That in turn helps us recruit further branches and of course increase revenue. It shouldn’t come as any surprise that we have doubled our book of mortgages, on which we are earning annuity income and that has become a material asset to the group.”
Bouris says YBR’s focus in 2014 will shift away from product development, manufacturing and promotion and move towards holding cost structure and materially increasing revenue.
“This year will see a closing of the gap between the revenue line and the expense line.”