Countplus cautious on outlook
Accountancy-based advisory group Countplus has reported a relatively steady full-year result, with net profit after tax down 2 per cent to $11.08 million and member firm net income up 3 per cent to $20.5 million.
However, in doing so, the company has held back on giving guidance for the current financial year until its annual general meeting in November, arguing “that it is too early to determine if business confidence will pick up post the federal election”.
The full-year results announcement, released to the Australian Securities Exchange late yesterday, noted that four quarter earnings had been impacted by falling business confidence, in part due to the pending federal election, with the result that the company “did not achieve its positive market guidance”.
The ASX documentation noted that member firm financial planning revenue was up 4.6 per cent over the period, describing it as being organically driven and making up 20.8 per cent of total net group revenue.
It said this included a benefit from loyalty payments made by the Commonwealth Bank, as a result of the takeover of Count Financial, to Count Financial franchisees.
The full-year results announcement noted a number of acquisitions and tuck-ins, including a 25 per cent interest in South Australian professional services firm Hood Sweeney.
It also referenced Countplus’ intention to undertake a further float based on the expected success of its so-called C+2 acquisition model, which it said was targeted at larger accounting-based firms.
“Once sufficient scale is reached, the intention is to publicly float 'C+2’, with firm principals maintaining a significant direct equity in their respective practices,” it said. “Countplus is in discussions with a number of firms in relation to 'C+2’,” it said.
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