Yellow Brick Road has reported a loss of over $9.5 million after income tax for its consolidated entity after announcing it was moving to a franchise model and consolidating its staff earlier this month.
The firm also saw a loss in underlying earnings before interest expense, tax, depreciation and amortisation (EBITDA) excluding impairment charges and other non-operating expenses of $3.9 million for the year ended 30 June, 2016, compared to a $1.276 million profit in the corresponding period in 2015.
In announcing its annual report to the Australian Securities Exchange, YBR executive chairman, Mark Bouris, said the firm failed to hit revenue targets as a result of tougher lending conditions, and as a result, announced cost cutting measures and consolidation.
He has also asked the remaining staff to take on a “step-in” approach to roles that were eliminated.
“I recently removed a level of management from the business. This broader restructure involved the removal of a number of management roles that are no longer required due to the fulfilment of projects and integration of acquired businesses,” Bouris said.
“This will result in a decrease in direct staffing costs and a leaner, more efficient head office team. I have asked the remaining senior managers to adopt what I call a ‘step in’ mindset so they will be stepping into the roles that have been eliminated.”
The consolidation included the removal of three senior roles and two middle management roles during the restructure, with the restructure of senior management and staff now complete, YBR said.
Bouris said he would step into the role of executive chairman, with the wealth business now directly reporting to him. This followed the resignation of chief executive of wealth, Matthew Lawler in July.
Additionally, the chief commercial officer would also be looking after marketing functions.
The firm said it would announce the general manager of wealth next week.
The report also showed Bouris’ remuneration stood at $1.6 million for the reporting period, compared to $5.6 million in the previous corresponding year.
Share prices stood at 17.5 cents at the time of publication, compared to 74 cents in July 2014 and 47 cents in August 2015.
