YBR posts 31pc revenue increase
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Krystine Lumanta is a journalist with InvestorDaily, a Morningstar publication.
Yellow Brick Road Holdings (YBR) recorded total revenue of $14.7 million for the full year to 30 June 2012, a 31 per cent rise on the previous financial year.
"Financial year 2012 saw the company build on solid foundations and invest for future growth," YBR said in a statement to the Australian Securities Exchange.
"Despite challenging market conditions, which included low credit growth, the YBR business has grown revenue strongly against the trend."
Growth in its branch network now represents over 50 per cent of total revenue.
Its cash position for 2011/12 reached $12.5 million, a 22 per cent increase from the previous period.
The company's focus for the 2013 financial year includes building on its initial spend and leveraging its partnership with Nine Entertainment Group, growing its branch numbers, capability and productivity, and selectively looking at product manufacturing for additional revenue.
The number of branch licences signed at 30 June 2012 was 120, increasing from 72, with a growing eastern seaboard presence that is strongest in New South Wales, followed by Victoria and Queensland.
YBR's advice capability was expanding as branches "move up the advice curve either by upgrading their individual capability, partnering in the branch, referring to YBR specialists face-to-face or [on] Skype and meeting regulatory requirements", the company said.
Its wealth management division reported that the broader advice model had been successful, while its statement of advice revenue and life insurance revenue were also growing.
YBR would continue building its funds under management (FUM), as a number of branches now "get it," with over 50 per cent of branches advising on a wealth management product, it said.
It achieved a 58 per cent increase in FUM, reaching $185.9 million at 30 June.
The company entered the funds management sector in October last year, announcing a joint venture with Coolabah Capital to establish YBR Funds Management.