Investor Group returns best-ever first-half profit
Investor Group overcame “extremely difficult” market conditions to deliver its best ever first-half operating profit of $8.36 million in the six months to 31 December 2002. This compared with $8.24 million in the first-half of 2001/2002.
However the financial services division was not a major player in this success - despite increasing revenue 32 per cent to $15.27 million, largely as a result of new business acquisitions. A significant reduction in the level of new funds invested during the period resulted in the division delivering a net contribution before corporate overhead expenses of $1.82 million, down 19 per cent from $2.24 million in the first-half of 2001/02.
Investor Group Managing Director Kevin White said the business services division, which offers accounting, taxation and business advisory services, continued to be the Group’s main revenue and profit contributor, and its performance largely compensated for a contraction in financial planning activity caused by global instability, declining financial markets and the severe drought in Australia.
For the Group as a whole, consolidated net profit after tax and before amortisation of goodwill was $5.33 million, a 2 per cent increase on the previous corresponding period, but higher amortisation of goodwill charges resulted in a lower consolidated net profit after tax of $3.15 million, down 11 per cent on $3.52 million in 2001/02.
Investor Group’s results were achieved on a fee and commission income of $63.83 million for the half-year, a rise of 28 per cent on $50 million in the first half of 2001/02.
While cautiously optimistic about the outlook for the second half of the year, White says the directors remain confident in the long-term outlook for the group, with acquisitions during the first half of the year in line with the company’s growth strategy.
White also again confirmed that Investor Group is in preliminary discussions on the possible acquisition of parts ofStockford, but says that no agreements have been made and that “there is no certainty that any transaction will result”.
AUTHOR
Freya Purnell
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