Mortgage Choice’s financial planning business has reported a $787,000 gross profit for the six months to December 31, up from $553,000 in the corresponding period of 2014.

However, it recorded a $266,000 net after-tax loss – which is nevertheless an improvement on a $342,000 loss in the previous corresponding half.

CEO John Flavell expects the financial planning business to reach net profitability soon.

“This result delivers on the target we set ourselves and I am confident this business will start to be profitable on a monthly basis by financial year end,” he said.

“We have seen a significant increase in both the number of referrals going to our financial advisers [and] the number of brokers referring business. Growth in financial planning referrals has been and will continue to be a key focus for us, and I believe we will continue to see significant growth in this area.”

Revenue for the financial planning business grew to $4.1 million from $2.7 million.

Direct costs increased 58% to $3.3 million in the six months.

Advisers wrote almost $18 million of inforce premium in the half, up from $11 million in the corresponding period of 2014.

Mortgage Choice had 33 financial planning franchises at December 31, compared with 34 a year earlier.