australian property still booming

I think the Australian investing community has been a bit harsh on any company related to housing finance in Australia. By all accounts its still booming:

Chairman’s Address - Annual General Meeting - 20 November 2007
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In this our fifteenth year of operation, I am delighted to report that Mortgage Choice has achieved another strong year of growth.
The housing market over the past 12 months has been described as being two, if not three, paced. The resources boom has driven high demand for housing finance in Western Australia, Northern Territory and Queensland. At the other end of the spectrum, New South Wales has been variable, with house prices and demand for housing finance increasing in some areas and falling in others. Victoria and South Australia performed in line with longer-term historical trends.
Despite this challenging market, our outstanding franchise network and their commitment to satisfying their customers’ needs, combined with our talented staff, has been central to our success.
The financial result for the year to 30 June 2007 was a net profit after tax (AIFRS) of $19.6 million, up 9.7% on the previous period.
The Board declared a second half fully franked dividend of 8.5 cents per share, bringing the total ordinary dividend for the year to 14 cents per share. This represents a payout ratio of 100% out of AGAAP profits for the year to 30 June 2007.
This is up on the dividend paid out of FY2006 profits of 12.5 cents per share. In FY2006 a special dividend of 2 cents was also paid out of accumulated profits.
Earnings per share were 16.6 cents compared to 15.2 cents per share in FY2006.
Our housing loan approvals during the financial year to 30 June 2007 showed steady growth, totalling $11.1 billion up 4% on the previous year of $10.7 billion. Our loan book grew to $29.6 billion at year’s end, 15% up on the previous year. The expected average life of loans has increased to 3.9 years. This is an outstanding result in a very competitive market.
Our growth in broker numbers has been pleasing with the total broker network increasing to 663 as at 30 June 2007, up from 620 in the previous year. At the same time our retail presence grew by 28 to 213 permanent outlets.
This combined growth demonstrates that our existing franchise owners are confident about the future and willing to invest in their businesses to accommodate further expansion.

Franchise growth improved on the prior year, with net franchise numbers increasing by 22 to 445 as at 30 June 2007. The current state of the employment market, the competition for new franchisees and a continuing and deliberate focus on quality candidates over quantity, continues to create a challenging environment for recruitment.
Importantly, there has been an increase in the sale of existing franchises, with these currently exceeding sales of new licences. This outcome is positive for Mortgage Choice as it recognises that, as the business matures, it is important to have a well developed succession/transition strategy for those franchise owners contemplating retirement and the sale of their business.
The Mortgage Choice business is built on a series of partnerships. A critical partnership is the one we have with our franchise network, a team of committed, entrepreneurial, independent businesspeople who put enormous energy and time into meeting their customers’ needs and, as a result, grow their own businesses. I have had the opportunity to meet many franchisees and their staff during my time as Chairman and I am always impressed by their drive, energy and passion for their customers and their businesses.
Our lender partners are also critical, as they provide us with the products and services demanded by customers. Our overriding objective is to work in an empathetic and mutually beneficial relationship with our lenders.
To our staff, my warmest congratulations. Their commitment to supporting the franchise network is unparalleled. Managing Director Paul Lahiff has again led the team brilliantly through another challenging and successful year.
As Australia’s leading mortgage broker, we enter a new financial year well positioned to compete and grow.
The strategies put in place to grow the business over the next twelve months and beyond are exciting and will establish a strong platform to compete and grow market share. The Directors believe that we can continue to exceed our stakeholders’ expectations next year and beyond.
I look forward to continuing to work alongside a motivated team of high achieving franchisees and their staff, successful lending partners and a talented management team and staff, and achieving even greater success for Mortgage Choice in future years.