Count bounces back in second half
THE Count Financial group will push ahead with a range of new businesses, including a burgeoning commercial loan operation, after reporting a 17 per cent jump in its full year net profit to $4.72 million last week.
The result included a dramatic turnaround in the accounting and financial planning group’s operating profit, which recovered after falling 20 per cent in the first half of the year to finish up three per cent at $6.18 million for the full year.
Count managing director Barry Lambert says the first half shortfall was recouped through a combination of organic growth and cost control, with the group growing its income by 14 per cent and cutting expenses by 10 per cent in the second half.
Lambert says Count has also introduced a financial blueprint for the business that calls for a reduction in its expense ratio from the current 64 per cent to 40 per cent by 2010.
Lambert also revealed details for the first time of its new commercial loan operation, which has lent $30 million since being launched in June.
Lambert says Count would promote the services, which offers business loans to Count clients, through its network of accountants.
However, it is Count’s wrap account, the wealth-e-account, which grew by 78 per cent to $1.46 billion over the past financial year, which is likely to be the group’s major revenue generator going forward.
Lambert says the wrap would generate a 30 per cent increase in income over the next year, even if funds under management in the product remained stagnant.
Lambert says Count also remains optimistic about the future of its fledgling planning spin-off, Compound Investments, because of the problems many small dealer groups face with professional indemnity insurance and the struggle to remain independent in a changing regulatory environment.
However, Lambert says progress has been slower than first thought for Compound, which has managed to attract just three planning groups since it was launched last November.
Count’s total number of franchisees grew by 10 per cent during the past financial year and now number 520, Lambert says.
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