WHK Group has reported a 7 per cent decline in cash earnings for the six months to the end of December, impacted by flat conditions and the drag created by its New Zealand exposures.
Reporting to the Australian Securities Exchange today, the group said the lower result was due to a 3 per cent fall in revenue as business conditions in the small to medium enterprise (SME) sector remained depressed and demand for financial planning remained weak on the back of flat investment markets.
WHK Group said its Australian operations had been flat while the New Zealand businesses were down 11 per cent, with the stronger Australian dollar having an impact on the result.
“The key focus on organic growth over recent years has contributed to the steady performance of the Australian businesses, while the New Zealand businesses — which are less compliance and more advisory based — have been more heavily impacted by business conditions which on the whole are worse for SMEs than in Australia.
The company said a number of WHK offices had been affected by the recent Queensland natural disasters and the floods in Victoria and NSW.
It said directors expected cash earnings in the second half to be broadly in line with the previous corresponding period.
