Snowball outperforms
The acquisition in February of Western Pacific Financial Group has paid dividends for Snowball Group Limited.
Snowball has more than doubled Funds Under Advice to $4.2 billion to record earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.4 million — exceeding earnings guidance it provided to the market in February.
The company announced on the Australian Stock Exchange this morning that its better than expected performance was owed to both improvements in its own operations and the synergies derived from its acquisition of Western Pacific Financial Group, which it acquired in February.
Looking over the horizon, the company said that in the 2008 fiscal year, Snowball should benefit from higher average levels of FUA, which had risen to $4.2 billion at June 30, 2007, compared to $1.9 billion a year earlier and ahead of the Western Pacific Financial Group merger.
It said that subject to the performance of financial markets, Snowball’s preliminary expectations were that operating EBITDA should grow organically by at least 15 per cent relative to the pro-forma result of fiscal 2007.
AUTHOR
Mike Taylor
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