Yellow Brick Road broadens its horizons and maintains $6m loss

Mark Bouris’ Yellow Brick Road has posted a $6.6 million loss in its half year results, slightly less than last year.

The company put the loss down to an increase in commissions, consultancy fees and other expenses.

The loss comes despite a 68.4% increase in operating revenue to $25 million. The total expenditure for the company is up 17%.

“Our management team has managed to keep overheads flat when you consider the growth that we have experienced,” Bouris says.

The group has doubled its mortgage book to $1,794 million.

“We completed the financial year with a very strong balance sheet. Our focus for 2014 is to continue to grow out footprint but will see us shift our focus away from product development, manufacturing and promotion to holding our cost structure and materially increasing our revenue,” Bouris says.

“This year will see a closing of the gap between the revenue line and expense line.”

Branch network revenue is up 127%, mortgage revenue is up 118%, wealth management revenue is up 217%, and general insurance revenue is up 29%.

So far this year the company has focused on attempts to branch out from just providing mortgages. It has provided “road to retiring right” training at 75 branches. And they’ve taken advantage of the June high season for super contributions through its celebrity apprentice campaign.

That means there are now 115% more people able to provide actual financial advice, letting the company experience a 138% increase in non-mortgage transactions.