Count optimistic on half year ahead
Count Financial expects to back up its strong performance in the first half of 2005-06, forecasting half-year earnings before interest and tax (EBIT) 70 per cent higher than in the same period last year.
Chairman Len Spencer predicted full year results would be up 30 to 40 per cent on the previous year with EBIT at least $21.3 million for the full year, and possibly as high as $23 million.
However, he noted the company’s decision to self-insure, while saving around $1 million a year, would increase the volatility of results.
“We expect the volatility will mostly be on the upside and this has certainly been the case for the 18 months since we cancelled our insurance,” Spencer said.
Managing director Barry Lambert last month said that increases in funds under administration in the recommended platforms would be the main factor behind achieving the company’s forecast of a 30 per cent increase in EBIT to June 2006.
At that time, overall funds under administration had risen by 7 per cent between July and September 2005, and this continued to the end of the half year, with total funds under advice having now risen by 32 per cent to $9.28 billion.
Funds in the recommended platforms — which include three BT platforms, Skandia, Colonial FirstChoice and Perpetual — were up by 40 per cent, and other investments increased by 27 per cent.
The company reported its expense to income ratio was continuing to fall despite work on the proposed accounting franchise, CountPlus.
Lambert today reported settled loans to franchisees for the first four months had been $3.04 million compared to $1.8 million last financial year, and that loan numbers were expected to grow as franchisees merged and expanded to meet CountPlus’ consolidation requirements.
The company also announced a ‘Christmas’ dividend of 1 cent per share would be paid on December 15, 2005.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
