Count prospers in tough times
Count Financial Ltdposted a record 25 per cent increase in after tax net profits today and is set to launch a number of new products and service offerings in the coming months.
Speaking at a Sydney briefing this morning Count managing director Barry Lambert said the increase of $1.19 million on last year to $5.9 million this year in after tax profits, which puts operating profits up 33 per cent, was largely attributable to fees from the group’s asset based loans and tight control of costs.
He says this approach was necessary to reduce the impact of spiralling professional indemnity premiums, which rose 200 per cent over the period.
“Our move from largely up-front income to ongoing asset/loan based income provides more reliable income and this is evident from the results now being achieved,” Lambert says.
Despite the reduction in the group’s expense to income ratio - down 3 per cent to 61 per cent - a projected further decrease to 40 per cent by 2010 will rely on income growth rather than further cost reductions.
Count is also set to launch its previously flagged DIY Superannuation Administration service and Count Property over the next 12 months.
The superannuation trustee administration platform will be in conjunction with Trust Company and aimed at do-it-yourself (DIY) superannuation funds. The system will be available to funds with their own trustee or those using an external trustee.
Trust will be involved in the platform through the provision of all compliance and external trustee services.
Meanwhile Count Property Portfolio, as it will be known, is a licensed real estate agent/Internet database of residential property approved by Count. It will seek to return 90 per cent of commission above 3 per cent to the client and can only be accessed viaCount Wealth AccountantsandCompound Investments, a financial planning spin-off of the group.
Count has over $5 billion in funds under advice across its various retail, wholesale and wealth-e-account interests.
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