Count scores 27% profit increase, positions for growth
Accountancy-based wealth management group Count Financial has recorded a strong half-yearly result, recording a 21 per cent lift in revenues to $58.64 million driving an increase in net profit after tax of 27 per cent to $9.48 million.
The company used the half-year result to also announce an on-market share buy-back of up to five million Count shares starting from next month and finishing no later than mid-December.
Count also declared a second dividend payable on April 13 of 2 cents.
Looking over the horizon, Count said that the drivers for 2007 and beyond would be the Federal Government’s superannuation changes, particularly the June 30 deadline for up to $1 million undeducted contributions and the post-June ‘tax free at 60’ changes.
The company also suggested that there was growth potential in the self-managed superannuation funds arena, via its SuperCentral SMSF deed generator with 859 deeds having already been put in place.
The half-yearly report also revealed the company’s expansion strategy, confirming that Countplus would begin making acquisitions in circumstances where expressions of interest had been received from firms with revenues in excess of $2 million.
Dealing with the question of the new BT Wrap Advantage product to be launched in March, Count said the arrangement would have a very limited impact on its results in the current financial year, but should have a positive impact in 2007-08 and beyond.
“We are happy to assist BT to negotiate a better deal for clients. Many Wrap Advantage products don’t satisfy our research process and therefore the benefit to Count will be less than the potential,” it said. “Those funds that do pass our research process will be added to our approved product list because they are cheaper for the client and in turn will increase our margins.”
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