Count looks to Mortgage Choice for profit boost

Count Financial reported its 29th consecutive profit at its annual general meeting yesterday, although net operating profits of $42.54 million were a decline of 18 per cent.

Count reported earnings before interest and tax of $23.43 million, down 30 per cent. However, it is expected the company will be buoyed going forward by its 17.3 per cent shareholding in Mortgage Choice.

Outgoing managing director Marianne Perkovic said Count expects to achieve record net profit after tax and earnings per share, with first half profits up 150 per cent on the first half of 2009, subject to investment markets and shares in Mortgage Choice remaining at current values.

Perkovic reported that investment income had a large increase to $4.72 million.

"This line item basically reflects the mark-to-market of our investment portfolio, and the largest shareholding in this portfolio is our investment in Mortgage Choice, which has seen an increased share price."

Count executive chairman Barry Lambert said Mortgage Choice's share price had risen sharply since June 30, 2009.

"If it can be maintained, this will produce a significant turnaround in our 2010 results, [particularly] when compared to the first half results," Lambert said, adding that the downturn in Mortgage Choice's share price negatively impacted on its financial result for FY2009.

Choice had steadily increased its shareholdings since the previous annual general meeting from 4.9 per cent to 17.3 per cent.

Perkovic reported that funds under advice, excluding direct property and including direct shares, fell by 19 per cent over the last year and now total $12.04 billion.

Inforce insurance premiums are up 29 per cent over the same period.

She said Countplus has performed strongly and would continue the acquisition drive in 2010 to acquire 20 further businesses prior to listing at the end of 2010. In 2009 it has partly acquired 13 businesses.

"We remain focused [on growth], and certainly Count is in good shape with little debt, a strong and stable professional network, and our three-plank growth strategy remains unchanged," Perkovic said.

"That is, we look to increase the number of quality members in the group, we look to improve the efficiency of the existing franchisees and also add on non investment products and services and other businesses to strengthen and also diversify our income."