Publicly-listed accountancy-based dealer group Countplus Limited has reflected some of the commercial realities attaching to earlier transactions by reporting a 13 per cent decline in net profit after tax of $6.03 million for the half year to the end of December.
Releasing the six-month result to the Australian Securities Exchange today, the company said the decline was attributable to a lower one-off tax benefit in the corresponding period realised from the tax consolidation of the group.
However the company pointed to the fact that gross revenue was up 8.6 per cent to $58.17 million, while the member operating profit was up 8.4 per cent to $11.51 million.
The ASX announcement said financial planning services had made up 21 per cent of net group revenue, with advice-related income increasing 7.1 per cent over the previous corresponding period. It said legal services revenue fell by $1.1 million due to the restructuring of the Perth legal businesses, and that legal services were not expected to contribute significantly to the group for the foreseeable future.
The announcement outlined the company's acquisitions and tuck-ins over the period, including acquiring a 25 per cent stake in Adelaide's Hood Sweeney and the business assets of two accounting firms in Melbourne — Dyason and Associates and Anthony Grieves and Associates.
Countplus said new acquisitions were expected to be largely initiated by existing member firms, which were regularly coming across new opportunities for their consideration.
It said that given its strong balance sheet, Countplus would continue to make further acquisitions at the group level (beginning at a minority interest level), although ‘tuck-ins' and ‘bolt-on' acquisitions were likely to prove more rewarding and more numerous.
