WHK cautious on acquisitions
Publicly listed financial services group WHK has foreshadowed a “subdued” approach to acquisition activity in the financial planning arena, despite announcing a strong increase in net profit up from $6.5 million to $23.4 million for the past financial year.
The company attributed the improvement to a stronger result from its financial services division with a significantly lower interest charge on the back of lower borrowings.
However, WHK told the Australian Securities Exchange (ASX) that while it was well placed for the year ahead it expected acquisition activity to remain subdued, with the focus instead being directed towards organic growth and business improvement.
The company signalled, however, that acquisition activity was possible to “take advantage of highly prospective opportunities should they arise”.
The WHK directors said they expected the group to achieve improved profit performance over the next 12 months, provided market and economic conditions did not deteriorate markedly from current levels.
AUTHOR
Mike Taylor
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