Mortgage Choice recorded its best ever net profit after tax (NPAT) cash and dividend results for the financial year ended 30 June 2014.  

The results reveal the company’s NPAT on a cash basis was $18.7 million, an increase of 18.6 percent on FY13.

In addition, the company’s fully franked final dividend was recorded at eight cents per share, which takes the total dividends for the year to 15.5 cents per share – up from 13 cents per share in FY13.

Mortgage Choice’s loan book grew by 4.6 percent from 45.3 billion as at 30 June 2013 to $47.4 billion.

It approved $12.2 billion worth of home loans over the period, an increase of 17.3 percent  when compared to the previous period, and settlements increased to $10.4 billion, an increase of 18.1 percent.

IFRS highlights for the 12 months to 30 June 2014:

• NPAT was $18.5 million, down 1.4 percent on $18.7 million in FY13 (excluding gain on sale of LoanKit).
• Earnings per share is now sitting at 16.0 cents, up from 15.2 cents in FY13 (including the sale of LoanKit).
• Total group revenue was $178.5 million, up 14.8 percent on FY13.

In addition, the group’s network increased over the period to include 405 franchises and 549 loan writers.

Mortgage Choice CEO Michael Russell said the FY14 results far exceeded the company’s expectations.

“We have embraced the opportunities that the strong market has presented us with and managed to deliver some of our best financial results to date.

“Over the last year, we have managed to significantly grow our underlying statutory revenue and profit, achieve a record number of loan settlements, and realise our highest cash result to date,” he added.

The company’s FY15 outlook is positive thanks to a strong property market, and home loan approvals are said to be at an all-time high.

Mortgage Choice plans to continue to invest in its core business, its diversified businesses, comparison website HelpMeChoose.com.au, as well as its relatively new Mortgage Choice Financial Planning business.

“The financial planning business is expected to turn a profit on a monthly basis from next financial year and we are well on track to reach our goal of 60 advisers on the ground by 30 June 2015, with 33 already in place,” Russell said.

He added the business’s focus will remain around executing its existing ACT strategy, building a compelling and differentiated customer experience, and providing sustainable earnings for its shareholders.

“We are in a very exciting stage of the business. At present, we are successfully transitioning the business into a diversified financial services powerhouse and we will continue to focus on our growth and diversification moving forward – adding value to our customers, franchisees, and our shareholders.”