YBR still in investment phase
Yellow Brick Road's preliminary financial report shows that the business is still in the investment phase. The company reported a 31 per cent increase in revenue, but higher marketing costs and investment and other expenses blew losses out by 162 per cent.Yellow Brick Road has entered into a marketing partnership with Nine Entertainment, paying around A$3 million to sponsor the Channel Nine program, Celebrity Apprentice.Two series of the program, which is fronted by YBR chairman Mark Bouris, have been broadcast - the first in October last year and the second in April this year.YBR chief executive Matt Lawler said in a statement that the sponsorship deal "generated significant momentum in overall brand awareness".By the end of June, the company had signed 120 branch agreements, increasing its network by 60 per cent in 12 months.YBR sells mortgages in partnership with Gateway Credit Union. The mortgages booked have doubled year-on-year to $865 million.The funds under management have increased by 58 per cent to $186 million.Revenue grew from $11.3 million in 2010/11 to $14.78 million for the year to June. Expenses grew from $9.1 million to $14.2 million over the same period.The loss for the year was $6.8 million.One area of underperformance was professional services - accounting, investment services and general insurance. Revenue for the division was down 13 per cent. Lawler said the division had been restructured so that general insurance sales were moved into the branch network.