Comparison website iSelect has reported a 53% drop in income due to a writedown of trail commission revenue.

Net profit for the year to June 30 was $6.3 million, compared with $13.4 million in the previous financial year. Revenue grew 2% to $120.4 million.

On August 15 iSelect revealed trail commissions from health insurers had been written down in an independent audit. The eventual impact was a $16.3 million reduction in revenue.

The firm says that disregarding this and the $900,000 cost of replacing its CEO would have seen net profit rise 27% to $18.3 million.

“Importantly, our new businesses have grown significantly in FY14, demonstrating our potential to build on the success of health and provide meaningful diversification of our income streams,” CEO Alex Stevens said.

iSelect, which listed in June last year, had a troubled start to life as a public company, missing prospectus revenue forecasts and seeing the departure of CEO Matt McCann.