Count weathers volatility
Count Financial has managed to weather the market downturn in reasonable shape, reporting only a 6 per cent decline in net profit after tax at the same time as posting a 16 per cent increase in earnings before interest (investment) and tax (EBIT) of $33.4 million.
The big dealer group pointed out that its EBIT was in keeping with its profit guidance of $34 million and that the $3.88 million fall in net investment income to a negative $1.56 million was entirely due to poor investment markets and the company’s investment in Mortgage Choice.
At the same time, Count used its results announcement to the Australian Securities Exchange to restate its view that Count would be an excellent home for Mortgage Choice’s 400 plus network of mortgage brokers and said that this view had been confirmed by “unsolicited approaches by Mortgage Choice franchisees”.
The company said that it had benefited substantially through the period from its decision not pay for professional indemnity (PI) insurance with inadequate coverage and that the strong growth in dividends was due in part to the savings on PI insurance.
“We are currently in the process of having alternative compensation arrangements reviewed by the Australian Securities and Investments Commission,” the Count announcement said.
AUTHOR
Mike Taylor
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