Snowball upgrades profits
Listed financial planning group Snowball has upgraded its profit forecast for the second time in a month, reporting it is now on course to register a $1 million result for the current financial year.
The result, before interest, tax and depreciation, is 15 per cent better than the $870,000 profit forecast issued by Snowball in April — itself a 34 per cent rise on earlier predictions.
Snowball managing director Tony McDonald said the improved performance was the result of more stable than expected investment markets and the performance of two financial planning businesses it acquired last year — Aspire Financial Services and Dunhill Financial Services — being “slightly better” than expected.
“We spent a lot of time making sure that those businesses would ‘fit the family photo’ and as its turned out, they very much fit…as a consequence, they are performing very well,” McDonald said.
The result is a far cry from the low years of 2002 and 2003, when Snowball posted losses of $6.16 million and $3.45 million respectively. McDonald said in earlier years, the group had invested heavily in the back-office and head office.
“If you go back a few years you can see we were spending a lot of money for back-office and head office and we’re now starting to see the benefits of that.”
McDonald said demand for the company’s back-office services was growing as super choice sparked investor interest, and financial planners considered moving to advice models and outsourcing back-office systems.
The group is also continuing its strategy of mergers and acquisitions.
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
