Financial services company, Spring FG, reported a net profit after tax increase of only 7.9 per cent for the 2016 financial year from $1.55 million in 2015 to $1.67 million, after it was hit by write-offs and an increase in income tax.
In reporting its full year results for the financial year to the Australian Securities Exchange (ASX), the firm said it was affected by a $103,000 write-off of fixed assets in relation to its relocation of its head office, and an 82.7 per cent increase in income tax to $709,000, compared to $388,000 in 2015.
The firm's revenue increased by 18.4 per cent to $11.67 million in 2016, up from $9.85 million in 2015. This was mainly driven by organic growth and its ongoing marketing campaign investments.
The financial planning, investment advice, and product sales revenue was up 13.5 per cent to $9.89 million from $8.71 million last year.
This was driven by new wealth management plan engagements, which were up 41 per cent to 551 for the year, up from 389 in 2015, Spring FG said. It saw 226 new wealth management plan engagements in the quarter to 30 June.
Accounting and taxation services revenue was up 57.6 per cent to $1.43 million, mainly driven by services to wealth management clients.
The directors anticipated declaring a full-franked dividend of one cent, which was expected to occur in October/November. It also expected to move to a twice-yearly interim and final dividend format.
Net assets were up 7.9 per cent to $16.84 million, while net tangible assets increased 12.7 per cent to $8.7 million, up from $7.72 million last year.