Yellow Brick Road Wealth Management has recorded a profit loss after tax of $2.55 million for the year ending 30 June, down from $8.75 million for the previous year.
The company originally projected its loss for the financial year to be less than $1 million, stating that it would deliver on its commitment to investors.
In a letter to shareholders, Yellow Brick Road executive chairman Mark Bouris said the company is in the process of lodging a private tax ruling application with the Australian Taxation Office in respect of tax deductions for work-in-progress acquired assets.
“After advice from the company’s tax advisers, no deferred tax asset has been recognised in the current period in respect of the potential tax deductions available, given insufficient certainty of treatment at this stage,” Mr Bouris said.
“The bottom line impact is to shift guidance of a better than $1 million after-tax loss to an audited after-tax loss of $2.55 million,” Mr Bouris said in the statement.
The company’s overheads increased by 53 per cent to $25.7 million, up from $16.8 million for the previous year.
Underlying funds under management increased by 56 per cent to $668 million.
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