Snowball releases profit guidance
Tony McDonald
Financial services company Snowball Group has announced its profit guidance, with earnings before interest and tax for 2008 approximately $11 million, up 42.3 per cent from 2007.
The group also announced the merger of its accounting business, Outlook Tax and Accounting Solutions (OTAS), with Duncan Dovico (DD), a NSW-based accounting business.
Snowball managing director Tony McDonald said despite increased volatility in the investment markets, Snowball ended the 2008 financial year on a high note, with funds under advice expected to reach $4.5 billion once acquisitions currently underway with Yarra Financial Planning and Mastertek Benefit Consultants conclude in August.
“We expect that securing reliability of revenue streams will continue to be one of the top priorities for all businesses, particularly in the wake of the latest financial market shocks. At Snowball we’ve been working on this for some years, diversifying our advice activities to build in revenue resilience. The results reflect this diversity,” McDonald said.
“Our year end results also clearly show the benefits of our carefully orchestrated acquisition strategy, complementing the group’s strong organic growth.”
From July 1, 2008, OTAS and Duncan Dovico will be amalgamated into one practice offering a full suite of accounting services, with a focus on servicing small to medium enterprises and high-net-worth individuals.
Snowball will own around one-third of the merged entity, which will have an annual turnover approaching $10 million.
According to McDonald, the upcoming merger underlines another cornerstone of Snowball’s ‘revenue resilience strategy’.
“Snowball is poised to turn to our advantage opportunities that may fall out of the current market uncertainty. We’re carrying a very low level of debt and are fired up to pursue our strategy of growing both organically and inorganically,” he said.
“Over the next 12 months our priorities will be diversifying our revenue streams, continuing to grow our corporate superannuation business and identifying opportunities to link up with reputable, well-run businesses that ‘fit our family photo’.”
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina take a look at the Reserve Bank’s unanimous decision to leave rates on hold on Melbourne Cup Day and whether future cuts are still on the cards.
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
