Mortgage Choice puts off listing
Australia-based mortgage broking franchisor Mortgage Choice has posted a record A$5.2 million (NZ$5.8 million) pre-tax annual profit after years of losses and declared a maiden dividend.
Tuesday, December 3rd 2002, 5:30AM
by Jenny Ruth
The result compares with a A$6 million pre-tax loss in the year ended June last year and a A$4.3 million loss the year before that. The unlisted company didn’t provide net figures but plans to pay a 3 cents a share dividend.
Mortgage Choice in New Zealand operates under license to the Australian company, headed by Miranda Caird, but is an entirely separate company with 27 franchised brokers and doesn’t disclose its results.
The Australian company now has more than 300 franchisees with a total of 430 brokers and claims an A$11 billion loan book.
Its latest result includes a one-off change in accounting policy. Previously, the company has recognised revenue as soon as a loan was approved and then made provision for those loans which weren’t drawn down. Now it is only recording revenue once a loan is drawn down.
The result provides an insight into just how over-heated Australia’s housing market has become. Mortgage Choice managed a 43% increase in the value of home loan approvals to A$5.8 billion in the year ended June and noted that the market overall grew 36% in the year.
The company also reports that growth continued into the current year with loans approved in the four months ended October up 12% over the same four months last year.
Mortgage Choice continues to eye a stock exchange listing but has ruled that out in the near future because of adverse market conditions.
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