More management fallout at underperforming Yellow Brick Road
The fallout continues at Yellow Brick Road after its disastrous performance in 2015/16, with another senior executive out the door.The chief executive of the lending division, Tim Brown, will leave the company at the end of the year. Brown was the head of Vow Financial, which Yellow Brick Road acquired in 2014.Brown's departure follows the resignation of the chief executive of the wealth management division, Matt Lawler, in July.Following the latest departure, Yellow Brick Road executive chairman Mark Bouris said in a statement that the role would not be filled. Instead, the general managers of the Yellow Brick Road and Vow Financial networks would take on more responsibility for leading their businesses.The company has been cutting its headcount over the past few months as its focus has shifted to efficiency and productivity initiatives. Yellow Brick Road's loss for the year to June was A$9.5 million - a blowout from the loss of $2.5 million in 2014/15. If the company had not been able to draw on a tax benefit of $3.1 million its loss would have been more than $12 million.Revenue rose 32 per cent but the company's cost management was weak. Commissions and consultancy expenses rose 30 per cent, employee benefits were up 40 per cent and operating expenses rose almost 60 per cent.