Snowball reports profit fall
Financial planning dealer group Snowball has reported a 31 per cent profit fall in the year to 30 June, 2010, mostly due to the financial impact of the acquisition of Officium Capital earlier this year, the group said.
Snowball’s full year report released to the Australian Securities Exchange showed its net profit after tax (NPAT) dropped from $5.3 million in 2009 to $3.7 million this year.
During the year, Snowball incurred $0.840 million in one-off acquisition-related costs, primarily legal and advice services.
“Acquisition costs incurred in the second half of the 2010 financial year were higher than anticipated, largely reflecting additional legal services required to be engaged due to the complexity of the transaction,” the report said.
However, the underlying NPAT, which excludes costs related to Officium’s purchase, was up 2 per cent and is, according to the company board, “the most appropriate profit measure to best assess the operational performance given its strategy for growth by, in part, acquisition”.
Snowball’s funds under management and advice have increased by 19 per cent, reflecting a contribution of $0.453 million from the acquisition of Officium, the group said.
The company also attributed this increase to positive net new business inflows and favourable investment market conditions.
Recommended for you
In this episode of Relative Return, host Laura Dew speaks with Andrew Mitchell, director and senior portfolio manager at Ophir Asset Management, about why he loves working in fund management and the lessons he’s learnt in a decade of running a firm.
In this episode of Relative Return, host Laura Dew speaks with Blackwattle Investment Partners managing director and chief investment officer, Michael Skinner, about setting up an asset manager and what he looks for in an investment team.
In this special episode of Relative Return, Momentum Media’s Phil Tarrant and Jordan Coleman discuss the publishing house’s expansion into greater coverage of the wealth management space.
In this episode of Relative Return, host Maja Garaca Djurdjevic speaks with Riley James, founder and chief executive of fintech SuperAPI, about creating a superannuation ecosystem and potential changes from the Quality of Advice Review.