Mortgage Choice’s financial planning arm made a gross profit of $2.2 million in the year to June 30, up 26% on the previous year.

The business returned to the black with an after-tax cash profit of $177,000, a turnaround from the previous year’s $300,000 deficit.

“Our financial planning division delivered its first full-year profit,” Mortgage Choice CEO John Flavell said. “As this business matures and our advisers spend more time building relationships with our network of mortgage brokers, referrals naturally grow.”

Referrals from the core mortgage broking business increased 13% and about 49% of brokers now refer customers on a regular basis. Revenue grew to almost $8.2 million from $6.7 million, and inforce premium increased 26% to $24.2 million.