Wednesday, August 23, 2006

Mortgage Choice Results

Results were release today by Mortgage Choice Limited (ASX:MOC) and they continue to be a shining star in my portfolio.

The highlights included :

• Record net profit after tax $14.8 million, up 16% on FY2005 $12.7 million. (AIFRS $17.9 million)
• Total revenue $126.2 million, up 14% on previous period (AIFRS $142.1 million)
• Earnings per share 12.6 cents per share compared to 10.9 cents per share in FY2005. (AIFRS
15.2 cents per share)
• Final dividend of 7.5 cents per share brings FY2006 total to 14.5 cents per share including a
special dividend of 2 cents.
• Trailing commission of $63million up to 51.2% for FY2006 (as % of total commission income)
compared with FY2005 50.1%.
• Mortgage Choice generated $10.6 billion in housing loan approvals during FY2006 and continues to achieve industry high productivity levels per broker.
• Loan book now stands at $25.7 billion, 18% up on FY2005; this compares to system growth of
13.3% year on year.
• Expected life of new loans remains at 3.8 years, consistent with the prior year.
• Total broker growth strong, increasing to 620 as at 30 June 2006 up from 574 in the previous
corresponding period.
• Franchise growth was higher than the previous corresponding period with Franchise numbers
increasing to 423 as at 30 June 2006, up from 407 in the previous year.
• A total of 64.5% of commission revenues was paid to Franchise owners compared to 62% for the previous period.

Defiantely a share to buy in if it ever becomes reasonably priced again. At the moment the PE is too high and it should be avoided for this reason. It has been in a nice uptrend for a very long time and while I still believe their is lots of upside potential I don't think I will purchasing anymore at the current levels.

A buy around 2.00 would be a great price to get this stock.

Good Luck Trading.

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