Measured growth strategy for Count
Count Financial is set to continue its acquisitions drive in 2010, but newly appointed CEO Andrew Gale said there is no point in pursuing profitless growth.
Gale takes the helm at the end of this month. His responsibilities include assessing Count’s mandate for growth and considering the importance of Count’s stake in DKN Financial Group.
Speaking at the Count annual conference in Canberra yesterday, Count chairman Barry Lambert said one focus for Gale when he takes on his new role is to consider Count’s stake in DKN, which currently sits at 7.1 per cent.
Lambert said DKN’s performance has not been particularly good over the past 10 years.
“Some might say that it could improve; some might say it may be time to put it to bed,” Lambert said. Lambert added that the decision would be handed over to Gale.
Gale said it was premature to comment about strategic direction at this point. However, he said his focus would be on enduring value for shareholders.
Gale said that while mergers and acquisitions (M&As) receive the most publicity, organic growth is more easily achieved and creates enduring shareholder value.
Gale, who joins Count from Deloitte, said he’s seen enough M&As to separate good deals from poor deals.
“It’s important that M&A deals create shareholder value, and it is also important that integration occurs smoothly,” he said.
Lambert said so far Count has acquired 13 businesses as part of its growth strategy for CountPlus, with further acquisitions opportunities expected in the second half of this year.
Lambert said while the CountPlus acquisitions were among the most exciting developments of the year ahead, he is looking forward to the IPO, which he said will occur at the end of the year.
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