GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
572638

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Mark Bouris-led Yellow Brick Road erases goodwill as it deliver late half-year loss

Posted by on in ROYAL COMMISSION URGENT
  • Font size: Larger Smaller
  • Hits: 123
  • 0 Comments
  • Print

Mark Bouris-led Yellow Brick Road erases goodwill as it deliver late half-year loss

The Australian 5:41pm March 7, 2019

Ben Butler

 

Mark Bouris-helmed mortgage broker Yellow Brick Road has taken a $34 million hit from the Hayne royal commission, slashing the value of its goodwill to nothing.

The writedown, which Yellow Brick Road (YBR) today told the stock exchange was due to uncertainty, negative consumer sentiment and decreased home loan volumes, was the main factor behind a $34.2m loss for the six months to the end of December.

However, half-year accounts released today — a week late because auditorsdid not sign off on the numbers in time — show Yellow Brick Road also made an operating loss of almost $4.3m amid what Mr Bouris said were the most difficult borrowing conditions he had ever seen.

Yellow Brick Road erased all the goodwill of its two main business units, cutting $3.9m from wealth management and $19.7m from lending — both areas that took a hammering during the banking royal commission.

This leaves as its only intangible asset $722,000 associated with its nascent home loan securitisation business, which Mr Bouris hopes will provide the company with a pathway to a profitable future.

Yellow Brick Road shares last changed hands at an all-time low of 5.4c on February 28, but have been suspended since then because of the company’s failure to lodge its accounts on time.

Trade in the stock is due to resume when the market opens tomorrow morning.

Mr Bouris, who is Yellow Brick Road’s biggest individual shareholder at just under 20 per cent of the company, told The Australian he had decided to “take the pain now” by writing off the goodwill.

“I’m disappointed but at the same time I’m sick of mucking around with these issues,” he said.

Separately, Yellow Brick Road has written the value of online self-managed super fund platform Brightday, which it bought from News Corporation three years ago but is trying to sell, down from $164,000 to nothing.

Mr Bouris said he was trying to simplify the business and all areas were under review.

The securitisation business represents a return to a business model familiar to Mr Bouris from when he founded and ran home lender Wizard Home Loans in the late 1990s and early 2000s.

“That asset is particularly valuable — and our auditors agree — given our progress around that particular initiative,” he said.

He said he was “going really hard at what we do best, which is manufacturing our own product”.

Revelations at the royal commission about misconduct by financial advisers, who were already under intense scrutiny due to a series of scandals over the past few years, and at superannuation funds, has led retirement savers to flee the for-profit sector in favour of their not-for-profit rivals at industry funds.

The Hayne inquiry has wreaked more havoc on the sector by calling for a further crackdown on misbehaviour by advisers and others charged with looking after other people’s money.

But while a package of reforms royal commissioner Kenneth Hayne recommended for home lending included banning trail commissions on new loans, the government has said it will not remove them from existing loans.

Mr Bouris told The Australian that Yellow Brick Road’s trail commission book was valued at about $49m — far more than the company’s market capitalisation of just $15m.

“We’re way underwater in terms of values,” he said.

Mr Bouris owns 19.02 per cent of Yellow Brick Road, but is pipped as largest shareholder by the Ron Brierly-backed Mercantile Investment Co, which owns 19.84 per cent and made an unsuccessful takeover bid for the company in October.

Nine Entertainment, where Mr Bouris has enjoyed a second career as the star of the Australian version of The Apprentice, owns 17.46 per cent of Yellow Brick Road.

 

Last modified on
Rate this blog entry:
0

Comments