BROKER Mortgage Choice (ASX: MOC) has delivered a net profit of $9.7 million for the six months ending 31 December – its strongest interim result to date, underpinned by the improving conditions in the property market.
The group’s net profit is 28.5% higher than the previous half year’s $ 7.5 million. Net profit including sale of Loankit was $11.0 million, up 46.4% on 1H13.
Earnings per share at 7.9 cents for continuing business (8.9 cents including both continuing and discontinued businesses) compared to 6.4 cents in 1H13. Mortgage Choice declared a fully franked interim dividend of 7.5 cents per share (which includes the sale of LoanKit), up from 1H13 of 6.0 cents.
Over the period total group revenue was $87.8 million, up 18.3% on 1H13. Total group revenue including the gain on sale of Loankit was $89.4 million, up 20.5% on 1H13.
Mortgage Choice CEO Michael Russell said the result suggests the company’s ongoing commitment to building a diversified financial services business is starting to pay dividends.
Company revenue showed improvements in 1H14 with loan book growing 4.4% to reach $46.4 billion, home loan approvals increasing by 21.6% to $6.2 billion, settlements rising by 18.8% to $5.3 billion and market share steady at 3.9% for all new home loans written.
“Our network of brokers are achieving best ever productivity levels, and with housing undersupply keeping heat in the property market, we expect them to become even busier in the months ahead. As such, our outlook for housing loan approvals for the remainder of FY14 and FY15 remains positive,” he forecast.
Property Review
