YBR buys digital investment platform brightday
Yellow Brick Road has shrugged off any concerns about its failure to generate positive cash flow or make a profit, and has made an acquisition it hopes will establish its presence in the digital investment market.The mortgage broking and investment advisory company has bought brightday, a web-based retail investment business. YBR did not say what it paid.YBR executive chairman Mark Bouris said the acquisition of a digital platform was a key part of the company's online strategy. The company will launch a "direct and online strategy" in the 2016/17 financial year.Bouris said the digital push was aimed at growing the wealth side of the business, which is currently much smaller than the mortgage broking division.YBR's loan book is worth A$32.3 billion, while its wealth division has funds under management of only $699 million.The company reported a loss of $4.05 million for the six months to December, compared with a loss of $4.2 million in the previous corresponding period.Revenue was $116 million during the half - up from $59.2 million.It suffered a net cash outflow from operating activities of $3.2 million. Cash and cash equivalents fell from $10.7 million to $6.6 million during the half.