Still profitable Count rails against PI

Count Financial is looking to a stronger 2010 with the prospect of double digit earnings per share (EPS) at the back-end after closing out the past financial year reporting a 9.1 per cent decline in profit to $19.37 million.

However, the accountancy-based dealer group took the opportunity of releasing its annual results to criticise the Australian Securities and Investments Commission (ASIC) for obliging Count to carry professional indemnity insurance and claimed Count was being penalised for the mistakes of other Australian Financial Services Licence holders who, it argued, should not have a licence.

It said while its results had been impacted by the global financial crisis, the underlying business remained sound and was well positioned for growth.

It said its first guidance would not be announced until its annual general meeting in November, but while the first half of 2010 would be slightly down, it expected to be in a position to forecast double digit EPS growth for 2010.

The company’s announcement said this would be based on revenue growth, increased investment returns and flat line expenses.

“Furthermore, Count expects to receive a one-off benefit from the listing of Countplus, expected in late calendar year 2010,” it said.

Drilling down on past financial year data, Count reported funds under advice (FUA) in preferred platforms had declined 14 per cent to stand at $5.92 billion, while FUA excluding direct property but including direct shares fell by 16 per cent to $10.72 billion.

The company used its announcement to the Australian Securities Exchange today to complain about having been obliged by ASIC to take out professional indemnity insurance despite its strong track record and continuing profitability.

“Australian Prudential Regulation Authority-regulated licensees can self-insure, and despite Count’s strong track record, we cannot,” it said. “Clearly Count is being penalised for the mistakes of other licensees, many of whom should not have a licence.”