Acquisition the key for Investor Group
Investor Grouphas flagged a continued growth push through acquisition of financial planning businesses - a move which follows on from its recent purchase of nine adviser and accountancy businesses.
The Melbourne-based firm says it will continue to grow through the acquisition of firms which are both culturally compatible and in strong financial positions.
However, announcing its short to medium-term strategy at its annual general meeting today, while the group’s previous acquisitions boosted profits to $9.4 million for the 2002/03 financial year, its share price was also hurt by the indirect market impact from the Stockford group of companies andGarrisons Accounting Group- given they are comparably listed companies.
Investor Group chairman Terrence Power says the cloud that hung over Stockford before its collapse in January led to a questioning of the long-term viability of the market sector and a share price downturn.
Power says this pain was compounded by the impact falling markets had on new business that was written by the group’s financial services division.
The group says the writing of new financial planning business has been relatively subdued for the first quarter of the 2003/04 financial year, with sentiment returning only gradually.
In the 2002/03 financial year, the group picked up two Victorian firms, a NSW firm and a Tasmanian firm as a result of the demise of the Stockford group.
Specialist financial planning groups Accumulus and Sanderson Blair were acquired by Investor Group under merger arrangements with Prescott Consultants - the group’s Adelaide firm.
Sydney accountancy and financial planning business Williams Hatchman & Kean, as well as Stewart Ruge & Walsh and Curtis & Thomas in regional Victoria, were also acquired.
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