Countplus remains acquisitive
Publicly-listed accountancy-based dealer group Countplus Limited has reflected some of the commercial realities attaching to earlier transactions by reporting a 13 per cent decline in net profit after tax of $6.03 million for the half year to the end of December.
Releasing the six-month result to the Australian Securities Exchange today, the company said the decline was attributable to a lower one-off tax benefit in the corresponding period realised from the tax consolidation of the group.
However the company pointed to the fact that gross revenue was up 8.6 per cent to $58.17 million, while the member operating profit was up 8.4 per cent to $11.51 million.
The ASX announcement said financial planning services had made up 21 per cent of net group revenue, with advice-related income increasing 7.1 per cent over the previous corresponding period. It said legal services revenue fell by $1.1 million due to the restructuring of the Perth legal businesses, and that legal services were not expected to contribute significantly to the group for the foreseeable future.
The announcement outlined the company's acquisitions and tuck-ins over the period, including acquiring a 25 per cent stake in Adelaide's Hood Sweeney and the business assets of two accounting firms in Melbourne — Dyason and Associates and Anthony Grieves and Associates.
Countplus said new acquisitions were expected to be largely initiated by existing member firms, which were regularly coming across new opportunities for their consideration.
It said that given its strong balance sheet, Countplus would continue to make further acquisitions at the group level (beginning at a minority interest level), although ‘tuck-ins' and ‘bolt-on' acquisitions were likely to prove more rewarding and more numerous.
Recommended for you
In this episode, hosts Maja Garaca Djurdjevic and Keith Ford are joined by special guest Steve Kuper to dive deep into the recent US election results and what they mean for the world.
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford, are joined by special guest Stephen Miller, market strategist at GSFM, to unpack the latest inflation figures and what they could mean for the RBA’s coming rate decisions.
In this episode of Relative Return Unplugged, host Maja Garaca Djurdjevic, along with Momentum Media political commentator Liam Garman and special guest Shane Oliver, chief economist at AMP, dive into the looming US election and what it means for Australia’s economy.
In this episode of Relative Return, host Maja Garaca Djurdjevic speaks with Grant Hackett, CEO of Generation Life, and Rebecca Pritchard, senior financial planner at Rising Tide Financial Services, to discuss the challenges posed by evolving superannuation and tax policies and how advisers can support clients in this shifting landscape.