Count adds up cost of expansion
One of the largest independently owned dealer groups in Australia,Count Financial, has flagged a 25 per cent drop in its operating profit for the first half of this financial year.
The listed financial services group, which is expected to announce its official half-yearly result by February 14, has indicated that its operating profit was hurt by a drop in new business following September 11 and by the cost of launching a new dealer group for independent financial advisers, Compound Investments, last November.
“The expected decline in the first half’s operating profit compared to last year was simply a reflection that income was reduced by the September 11 fall-out on both new business and asset balances, but the expenses, including software write-off have grown more than the 10 per cent growth in our income,” the group says.
However, the group is forecasting a 25 per cent jump in its half-year, after-tax profit compared to the corresponding period last year, mostly due to the fact that it had avoided investment write downs over the time frame.
Count also says the second half of the financial year is traditionally much stronger for the group as the influence of superannuation contributions kick in and as the flow of funds into its flagship wrap account, the wealth-e-account, increases.
The total assets in the wealth-e-account have increased by almost 40 per cent since the start of the financial year, passing the $1 billion mark late last year.
Count has also experienced a six per cent jump in the number of new franchisees since the start of the financial year, including Callaghans of Canberra, a five partner accounting firm and former Count franchisee which returned to the group after having left to explore other alternatives.
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