Stockford pitches plan for growth

Accounting and financial services groupStockfordhas announced a three point strategic plan in an attempt to put a troubling 12 months behind it and reach its earnings forecast of $25 million in 2002.

Stockford, founded last November, had a disappointing first year, reporting a net loss of $5.7 million in 2000-2001 financial year as a result of delays in integration, business divestments and cost issues.

But despite industry speculation that the group would repeat the same financial results next year, Stockford chief executive Jim Phillipson says otherwise.

At the group’s annual meeting yesterday, Phillipson indicated Stockford's strategic plan is intact and, with the inclusion of the group’s latest three-point plan, the group as a whole would continue to be a strong and viable business.

The three-point plan involves improving its general operations, increasing cross referrals and further integrating cost savings. The plan also involves an incentive program for accounting and financial planning practices that reach performance benchmarks.

Phillipson says using a common software system would allow the company to establish key performance indicators in all offices.

He says Stockford would continue to develop specialist areas of the business and recruit professional advisers.

It is understood the group’s disappointing first year performance was a result of difficulties encountered in attempts to integrate the 53 accounting practices that make up the group.

In July, shares in Stockford plunged by more than 40 per cent after the company said its 2001 earnings would fall below expectations.

Yesterday they closed one cent weaker at 32 cents, compared with their peak of $2.15 in January.