CountFinancial expects to post an operating profit of $10 million for the 2003/04 financial year in line with its 30 per cent per annum growth over the past five years.
According to statements made at the group’s annual general meeting today, this would compare to an operating profit of $8.22 million last financial year, which yielded a net profit figure of $5.87 million. These profits for the last financial year came out of a total group operating income of $21.04 million.
Count managing director Barry Lambert says continued profit growth is a result of Count’s business and revenue model, increased service diversification and the ongoing development of Count’s efficiency.
Lambert says the group’s business model ties revenue more to platform funds under administration than from income based on a share of upfront investment income, meaning it is less volatile.
He says this emphasis on “quality” income has meant the group has not been effected much by the fluctuations that have been seen recently in investment markets.
Lambert says while markets have been low, the business has also diversified to top up its income, in areas such as its lending business which turned over $50 million in home loans last month.
These measures came on top of continued efforts to make the group’s accountants more productive through upgrading systems to net-based services, making it easier for them to do business.
The expected profit led the group to announce it would increase its dividends by 65 per cent over two years and that it would now be paying quarterly dividends, up from twice per year.
Count’s share price shot up 5.7 per cent to 74 cents on the back of the profit and dividend news.
Lambert says the group is still looking for growth and is investing a lot in developing the business further, and that he expects expenses to fall as a percentage of income over time.
