YBR sells accounting and legal business
The overhaul of the Yellow Brick Road business continues, with the announcement that it will sell a subsidiary business, Yellow Brick Road Accounting & Wealth Management.YBR has entered a business sale agreement with DBR Advisory Pty Ltd which will acquire the YBR accounting business and legal practice. The buyer will pay A$1.9 million in cash plus another $2.7 million over the next five years, subject to payment set-off arrangements for certain accounting services.The sales agreement includes a five-year accounting services agreement, whereby Yellow Brick Road will engage DBR Advisory for the provision of accounting services for not less than $290,000 a year.Part of the original Yellow Brick Road business model included a professional services division. This part of the business has been a chronic underperformer, even by YBR's low standards, and has now been sold off.Yellow Brick Road reported a $9.5 million loss for the year to June - a blowout from the loss of $2.5 million in 2014/15.