YBR in $390,000 deficit

The franchise has seen some mixed quarterly financial results with lower settlements sitting in contrast to a growing loan book

YBR in $390,000 deficit



Mortgage and wealth management franchise Yellow Brick Road has revealed a mixed bag in its performance with its latest quarterly financial results showing an underlying cash deficit and lower settlements balanced by a growing mortgage book and lead generation capabilities.

The firm reported an underlying net operating cash deficit of $390,000 for Q1 FY18 which was down 214% from the corresponding time period in the previous financial year. This was also down from the $340,000 surplus the previous quarter.

These figures come only months after the company reported its maiden profit of $2m at the end of August. The difference here relates to an issue around payment timing, a YBR spokesperson told Australian Broker. Some variation is expected within quarterly results, they said.

The mortgage book grew by 17% to $46bn with most of this growth attributed to Vow. However, settlements dropped by 2% to $3.8bn during the quarter.

“Lending was solid in a tightening market,” the spokesperson said.

The franchise also lost 4% of its representatives including the removal of 10 non-performing branches. YBR now has 1,538 representatives nationwide with seven new branches expected to join this quarter.

YBR’s recently updated Vow Lending Platform, complete with real-time learning offerings for member brokers, is hoped to significantly improve productivity and compliance.

Finally, new lead partners and improved analytics have led to a 37% increase in lead flows compared to the same time period last financial year.

As of 30 September 2017, YBR held $4.6m in cash and cash equivalents plus $1.2m in undrawn finance facilities.

Overall, these were “good solid results”, the spokesperson said.

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