SFG looks to growth after strong result
Publicly-listed financial services group SFG has signalled more acquisitions and tuck-in transactions within its financial planning operations — including dealer group Shadforths — on the back of announcing a 14 per cent increase in full-year net profit after tax.
The directors said the result reflected favourable market movements in both domestic and global equities, as well as the acquisition of Lachlan Partners and several tuck-in moves during the 12-month period.
The result prompted the directors to pay a final dividend of 1.40 cents per share and to signal that the company is "well positioned for future organic and acquisitive growth" on the back of strong operating cash flow and an increased debt facility of $25 million from St George Bank.
It said this enabled SFG to "proactively seek quality, strategic, value-accretive partners consistent with its mergers and acquisitions strategy".
Commenting on the result, SFG managing director Tony Fenning said the company had made considerable progress with its strategy and believed the services required of financial advisers and accountants were converging — and that government reform was also driving the professions together.
"Lachlan Partners brings the systems and competencies to build out our accounting strategy and expand an integrated and seamless combined service offering for self-managed super funds and high net worth tax needs," he said.
AUTHOR
Mike Taylor
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