MOC records solid interim financial result

February 25, 2015

Mortgage Choice Limited (MOC) has today announced its financial results for the six months ending 31 December 2014. 

Today's results are on par with last year, highlighting the company's ongoing strength and ability to continue to deliver strong profit results while investing in network growth and its diversified businesses.  

Financial highlights for the six months to 31 December 2014*

• NPAT on a cash basis was $9.0 million and equal to the result achieved in 1H14.
• Total loan book reached $48.4 billion. This was up 4.5% from $46.4 billion at 31 December 2013 and is poised to hit $50 billion by 1H16.   
• $6.9 billion worth of housing loan approvals were written in the six months to 31 December 2014, up from $6.2 billion in 1H14.
• Annual share of new home loans remained at 3.9%, on par with 1H14.
• A fully franked interim dividend of 7.5 cents per share was declared by the Board, on par with 1H14.

On an IFRS basis:

• Group net profit after tax (NPAT) was $10.0 million, up 3.3% on $9.7 million in 1H14.
• Earnings per share at 8.0 cents for continuing business compared to 7.9 cents in 1H14.
• Total group revenue was $97.0 million, up 11.0% on 1H14.

Mortgage Choice CEO Michael Russell said the results were incredibly pleasing and they highlighted the ongoing strength of the business as it continues down the path of diversification.

“To achieve an interim profit result that is on par with last year is very pleasing, given that last year was our strongest interim profit result on record,” he said.

“Over the last six months, we have significantly ramped up our investment in our personnel and technology across diversified businesses HelpMeChoose.com.au and Mortgage Choice Financial Planning. Thanks to this increased investment, HelpMeChoose.com.au is now well placed to take advantage of seasonal uplifts in 2H15 and Mortgage Choice Financial Planning is now ready and geared for further growth, with 40 financial advisers currently on board.

“Moving forward, we will continue to focus on quality recruitment and expect to have 50 advisers fully operational by financial year's end.

“In addition to the increased investment in our diversified businesses, we have also increased the commission share to our franchisees, allowing them to earn more commission than ever before. To be able to reward our franchisees in this way and still manage a healthy $9 million NPAT on a cash basis is immensely satisfying.”

Mr Russell said the ongoing strength of the company could be attributed to the productivity of the company's broker network. 

“Over the last 12 months we have invested in recruitment incentive programs, enabling us to add 50 new loan writers to our network. Despite the fact that we now have a number of new operators working within the business, our network of brokers continue to achieve strong productivity levels, which has resulted in approvals soaring 11.4 per cent and settlements growing by 9.0 per cent in comparison to 1H14. And with low interest rates keeping heat in the property market, we expect our broker network to become even busier in the months ahead.

“Looking forward, our outlook for housing loan approvals for the remainder of FY15 and into FY16 remains positive.”

If you want to learn more about your home loan options, call 13 77 62. 

*Prior year comparatives exclude discontinued operations