The 2016-17 financial year has seen Yellow Brick Road post its first pre-tax profit since launching in 2007.
The company recorded a maiden pre-tax profit of $2 million, with an EBITDA (earnings before interest, tax, depreciation and amortisation) of $5.2 million.
“The work we’ve done in recent years to expand distribution, increase efficiency and diversify revenue has paid off and allowed us to deliver our maiden profit, even in the face of a tough lending environment,” said Yellow Brick Road executive chair Mark Bouris.
“Despite the volatility of the sector, we’ve grown both our loan volumes and revenue. With these fundamentals in place, we are extremely well-positioned to win in this market.”
The company’s underlying loan book grew 17 per cent over the year, and reached $44.1 billion by 30 June 2017, which Mr Bouris said demonstrated “the true value of the company, which isn’t reflected in the current share price”.
“When you consider our loan book, funds under management and our brand and distribution assets, there is a strong value story there,” he said.
Mr Bouris said the business expects to continue growing given the scope for non-bank lenders to take advantage of “the current, tighter credit conditions”, and that it was also developing a new learning platform.
“It will boost business skills, technical knowledge and, ultimately, professional standards in the sector,” he said.
The prudential regulator has released its latest corporate plan.
The bid was originally put forward in June.
ASIC has issued a permanent ban to the former financial adviser.
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