In all his years in the finance business, YBR’s Mark Bouris says that he has never seen such difficult borrowing conditions.
Yellow Brick Road Holdings Limited released its unqualified audit-reviewed half-year report for the six months to 31 December 2018, which shows a net loss after tax (NLAT) of $34.15 million.
The result includes a non-cash asset write-down of $33.95 million ($30.96 million after tax) on the carrying value of the wealth management and lending business and various other intangible assets across the group.
Underlying EBITDA (excluding noncash asset write down) was $2.46 million loss vs $2.10 million profit for the prior corresponding period (pcp). Underlying Cash EBITDA (excluding non-cash asset write down and non-cash PV-based revenues) was $1.27 million loss (pcp $2.06 million profit).
“It has been an unusually tough six months,” Mr Bouris said. “Sentiment surrounding the royal commission, changes in credit approval processes, more intense regulatory oversight and greater compliance requirements and costs have created significant uncertainty.
“It is now particularly hard for mortgage originators and brokers to assist borrowers to obtain an approved home loan. In all the years of being involved in the home loan business, I have never seen such difficult borrowing conditions. These factors have caused an adverse impact to our new lending, particularly in the December quarter,” Mr Bouris said.
“I remain fully committed to working in the business and achieving better returns for all shareholders. We are working on new market-relevant and competitive lending products to offer borrowers through our branded branch network and our independent distribution network across Australia to meet demand from consumers,” Mr Bouris said.