Countplus increases profit, eyes further expansion
Publicly-listed accountancy-based financial planning group, CountPlus Limited has managed to increase profit reporting a full-year net profit of $5.95 million up from $3.68 million last year.
In releasing the result to the Australian Securities Exchange (ASX), Countplus chief executive, Matthew Rowe described them as reflecting solid progress and underpinning a judicious approach to attracting, retaining, and growing high-quality financial advice firms.
However, in doing so, Rowe pointed to challenges ahead including the mandatory rollback of grandfathered rebates and platform commissions paid by product manufacturers to licensees.
As well, the company flagged a strategy of selective growth, building off the successful acquisition and bedding down of Count Financial.
A dividend of 1.25 cents per share has been declared by the Board.
“The Company is in a strong financial position, reporting a strengthened balance sheet with net cash at bank of $21.1M,” Rowe said
“On the basis of this stability, we see opportunity on the horizon to selectively invest in high-quality accounting and financial advice firms that fit our purpose of unwavering client focus and making a decent profit, decently.”
“The embedding of CountPlus as the new custodians of Count Financial since October 1, 2019 has demonstrated the Company is ready for near-term industry challenges including the cessation from 2021 of rebates and product incentives paid to financial advisers,” he said.
Rowe said the economic difficulties of COVID-19 were evident within the broader Australian community, but in plain sight amongst small to medium enterprise clients with the dynamics of the advice sector having created additional uncertainty as major institutions exited the wealth and advice sector and as adviser practitioners grappled with higher education and regulatory obligations and overall adviser numbers reduce at pace across Australia.
“Notwithstanding the obvious external challenges, the opportunity for careful and considered expansion remains ahead for CountPlus,” he said.
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