Count lifts profit forecast

Count Financial reported a better than anticipated $4.99 million half year after tax profit today, and immediately lifted its forecasts for the remainder of the year.

The country’s second largest independent dealer group is now expecting to record a $15 million operating profit for the year to the end of June - up from the $14.1 million it had previously predicted.

The group will pay shareholders a 1 cent “Easter” dividend in April on the back of the result, which was buoyed by a 38 per cent growth in asset based income to $6.7 million, largely from platforms.

Income from fees and commissions grew 10 per cent to $5.97 million.

Managing director Barry Lambert said the group had also cut spending on information technology and culled a number of under-performing practices in order to contain expenses.

The number of Count practices actually fell during the half year, Lambert said.

While Count would look to increase the number of its advisers, Lambert said new practices wanting to join the group would have to go through a trial phase where they could sell only Count’s loans and leasing products. Only those that perform well enough will then be invited to become part of Count’s wider financial planning business.

“We have been looking at our business in recent times and looking at what is working and what is not and deleting those parts that are not. As a result we have had a reduction in our expense ratio,” Lambert said.

Count also announced today that it had formed a new subsidiary - Count Margin Lending Broking - in a joint venture with former employee Jody Sherring.

The business will provide an equity lending broking service to executives who need funds to exercises company share options.

“There is a growing need for executives to finance options,” Lambert said.