AustChoice prepares to list
AustChoice Financial Services is still on track for a listing in late 2002, according to managing director Roger Gumley.
"There has always been a business plan to crystallise the value of the company by listing and we haven't moved from our late 2002 target,' he says.
The company will not list until it has $3 billion of funds under administration. Currently AustChoice has $740 million and is expected to achieve $1 billion by the middle of this year.
Speaking at the company's AGM just before Christmas, AustChoice chairman Bill Bessemer said AustChoice is still very much in the early stages of development and evolving towards successfully completing its five-year business plan.
"AustChoice has successfully initiated the establishment phases of its five year business plan while larger financial institutions are now endeavouring to down-size, rationalise and outsource to achieve the same economically efficient model," he says.
Revenue for AustChoice in the year ending June 30 was $1.1 million, which was up 381 per cent on the previous financial year. Rebated payments to adviser shareholders of AustChoice increased 680 per cent to $569,741 in the 2000 financial year.
The group now has more than 200 planners writing business for AustChoice and the number of shareholder members has doubled in the past year to 47.
Bessemer says the strategy for the company this year is to increase assets under management to boost earnings.
Currently AustChoice has earnings before tax and interest of about $1.5 million and Bessemer says the goal is to lift that to $9 million before listing.
"Growth in assets under management and the resultant growth in margin earnings is 'mission critical' for AustChoice in 2001," he says.
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