'Solid' result for Countplus
Countplus has reported a consolidated net profit after tax (NPAT) of $6.93 million for the half year to 31 December, down 10.7 per cent on the previous year, a result the group described as "solid" in a challenging business environment.
The group also announced earnings per share of 6.3 cents and earnings before interest, tax and amortisation (EBITA) of $10.51 million - an increase of 11.4 per cent over the prior corresponding period.
The drop in NPAT despite the uptick in EBITA occurred due to non-cash fair value revaluation uplift in the corresponding period, Countplus stated.
Normalising for the revaluation and a one-off tax benefit derived from tax consolidation in the current year, consolidated net profit increased by 17 per cent, the group stated.
Revenue over the period was derived primarily from accounting and financial planning services, with organic growth in both these main revenue lines, the group stated. Total net member revenue was up 10.3 per cent on the previous year to $45 million.
Total expenses were up 11.1 per cent, largely due to a 12.2 per cent increase in salary and employment costs on the back of a number of acquisitions.
The group said it would continue to target "tuck-in"-style acquisitions by its subsidiaries and may also acquire minority interests in larger practices. Acquisitions must be earnings-per-share accretive, the group stated.
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