Weak markets hurt Investor Group
Financial services firmInvestor Grouphas issued a subdued earnings forecast for the 2002/03 financial year attributing the performance to depressed markets and weak consumer demand for financial planning.
The company says its expected earnings before interest, tax and amortisation (EBITA) to be in the range of $14.5 million to $15 million, down on consensus market expectations of $15-16 million.
Thr group says its net profit for the financial year as a result would be in the range of $4.3 million to $4.6 million, compared with $6.3 million for 2001/02.
The group says that its performance has been adversely affected by lower than expected new business revenue in the financial services market that has remained depressed in line with the first half of the financial year.
Underlying new business inflows for the group’s financial services division are estimated to be down by between 30 and 40 per cent on last year, which the group says is in line with general industry experience.
This resulted in a forecast revenue for the division of $30 million, some $4 million below budget expectations, though consistent with a first half revenue of $15 million.
The forecast full-year revenue for Investor Group for 2002/03 is $127 million, with its business services division to yield a revenue of $97 million.
The group says new business acquisitions have strengthened its financial planning capabilities in 2002/03 compared to last year.
It says that four recently acquiredStockfordfirms will contribute materially for the first time in 2003/04.
The group adds that while acquisitions remain an important part of the group’s long term strategy, the key focus for 2003/04 will be organic growth and margin improvement in existing businesses.
It expects a 2003/04 revenue of $148 million and EBITA in the range of $18 to $19 million.
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