Financial planning drives Prime’s profit

Strong organic revenue growth in financial planning and accounting services has helped Prime Financial Group to a 132 per cent increase in net profit for the first half of this year.

Financial planning services contributed 71 per cent to the first-half profit total of $3.11 million, up from $1.34 million in the corresponding half last year.

Earnings before interest and tax rose to $4.34 million for the half year, a 32 per cent increase on the 2007 first half ($1.09 million), while earnings per share increased from 1.56 cents per share to 2.28 cents per share, a 46 per cent increase.

The declared interim dividend of 1.4 cents per share fully franked for the first half of this year is a 180 per cent increase on the 2007 first half dividend of 0.5 cents per share.

Simon Madden, managing director and chief executive, said Prime is “well positioned to achieve the analyst’s forecast earnings range of $7.0 million to $7.6 million for the full year this year”.

He said the first half results reflect the “ongoing performance” of Prime Financial Group since its merger in November 2006, when Victorian-based wealth management provider AVFM Limited acquired planning groups Prime Financial Group and Lateral Thinking Financial Planning.