Countplus targets underperforming firms
Publicly-listed accounting and financial group, Countplus has signalled a review of its poor performing member firms and the possibility of a restructuring.
Announcing a 1.9 per cent in full-year profit attributable to owners of $11.13 million but noting that some of this was owed to the final loyalty payment from the Commonwealth Bank resulting from the sale of Count Financial, the firm announced a direct equity plan for employees within its subsidiary businesses.
The company's announcement to the Australian Securities Exchange (ASX) also noted that full-year result had fallen behind its profit guidance for the period — something which was owed to "late negative provisioning adjustments".
It said that it would be not issuing a profit guidance for 2014/15 until its annual general meeting in November, noting that it was too early to determine if business confidence would pick up, adding that the loss of the [Commonwealth Bank' loyalty payment would impact its 2015 result.
Discussing future and current developments, the ASX announcement said that it had been almost four years since the company had completed the purchase of most of its business and that, during that time, "some businesses have performed better than others".
"It is appropriate that we now review our investments and strategies before moving on to the next stage of our development," it said.
The announcement referenced the sale of one of the company's "largest and poorer performing firms" and noted that at year's end, following the resignation of three senior Principals, it had been necessary to restructure another poor performing business in Canberra.
"Other poor performing firms will receive our close attention in 2014/15 and further restructuring may result," it said.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
