Indepedently-owned mortgage broker and franchisor, Mortgage Choice, has announced an interim financial performance that is on target thanks to new company initiatives and a recovering housing finance market.

For the six months to 31 December, 2009, the company posted a net profit after tax of $7.8 million – a 21.9 per cent increase on the previous corresponding period.

Chief executive officer, Michael Russell, said “Despite housing credit growth having slowed for the time being, we are pleased to have achieved significant milestones during the first half of this financial year. Most importantly, approvals, settlements and franchise recruitment are all up on the previous corresponding period.”

At an annual results briefing in August 2009, Russell announced his plans to expand the franchisor’s range of products to help it thrive within an evolved lending landscape. It also planned to, and succeeded in, escalating the rate of greenfield franchise recruitment.

“In the six months to 31 December, 2009, Mortgage Choice sold eight new franchise agreements,” Russell said. “We have since signed a further five, putting us well ahead of our financial year target”.

Total commission revenue on a cash basis was $69.5 million, up 1 per cent on the prior corresponding period. Net assets were $70.1 million compared to $66.4 million at 30 June, 2009, while the value of Mortgage Choice loans stood at $37.7 billion, up 9.6 per cent on the $34.4 billion balance for the same time in 2008.

“It’s important to note we are not forecasting the second half of this financial year to rival the first, however Mortgage Choice is on target for a sound FY10 result,” Russell said. “For this we thank our motivated franchise network and our committed group and state office staff”.