Mortgage Choice’s financial planning business has reported a 38% rise in gross profit to $1.7 million for the year to June 30.

The business recorded an after-tax loss of $300,000, an improvement on the previous year’s loss of $661,000.

And this figure is misleading, because the business moved into profit from February, four months ahead of its target date, according to Mortgage Choice CEO John Flavell.

“Last year we told the market our financial planning business would deliver profitability on a monthly basis by the fourth quarter of financial year 2016,” he said.

“I am happy to report we achieved this outcome ahead of schedule.”

The financial planning business’ revenue grew 7% to $6.7 million. Inforce premium increased 28% to $19 million at June 30.

The business benefitted from referrals from the mortgage operation, recording a 21% increase to more than 3500 referrals in the year to June 30.

“We have doubled the proportion of our debt customers whose wealth needs we are meeting to 10%,” Mr Flavell said. “While this is impressive growth, there is still a significant opportunity for us in this space.”