The proceeds of asset sales pushed Yellow Brick Road back into the black in the 2019/20 financial year, with the company reporting a net profit of A$5.9 million.

The company completed a restructure during the year, selling its 50 per cent share of Smarter Money Investments and its advisory business YBR wealth.

YBR is now a pure mortgage origination, broking and servicing business. Earlier this year it set up a securitisation warehouse facility with an Australian bank.

The warehouse facility is being run by Resi Warehouse Funding, which is a 50/50 joint venture with an affiliate of Magnetar Capital.

The asset sales resulted in net gains of $6.9 million and $225,000, which lifted pre-tax profit from $2.6 million to $9.8 million. After tax and a loss of $1 million on the discontinued businesses, the bottom line was $5.9 million.

Revenue fell 13.2 per cent to $159.6 million. Total expenses were down 15.7 per cent to $178.2 million. Net cash flow from operating activities was $3.7 million, compared with outflow of $95,000 in 2018/19.

At June 30, YBR’s underlying loan book was $50.2 billion – up 1.6 per cent over the year.