24 August 2012 7:02am

Broker franchise group Mortgage Choice continued to struggle with its diversification strategy over the last financial year. While earnings for the core broking business were flat, year-on-year, losses on recent acquisitions and start-ups increased.

Yesterday, the company reported a net profit of A$18.5 million for the 12 months to June – one third down on the previous year.

On a cash basis, after adjusting the net present value of future trailing commissions, earnings fell six per cent.

The value of the loan book increased by 6.4 per cent, to $45.1 billion, which was...