Investor Group flags acquisitions after record year
Listed accounting and financial planning consolidator Investor Group has flagged the possibility of further acquisitions as part of its nationwide expansion strategy after reporting a record 56 per cent jump in its net profit yesterday.
Investor Group managing director Kevin White says the group will continue to look for strategic acquisitions across the country to boost its distribution capacity, particularly through its emerging Prescott financial planning brand.
Last week, Investor Group announced it had added a fourth firm to the Prescott brand after paying $9.55 million for Sydney based Williams Hatchman and Kean (WHK).
The acquisition followed that of Sanderson Blair, Accumulus and Prescott itself over the past year, all of which will operate under the Prescott banner.
The record profit jump for the group came largely on the back of a rise in its fee and commission income from $64.03 million in 2001 to $100.52 million in 2002.
The growth was spurned by a 106 per cent increase over the past 12 months in Investor Group’s financial planning revenue, which now accounts for 26 per cent of the group’s total fee income.
White says revenue from financial planning would be the mainstay of Investor Group’s growth going forward.
“Investor Group’s substantial financial planning base is expected to underpin strong and compounding income growth in future years, with revenue from business services also expected to show steady growth,” he says.
As a result of its acquisition strategy, Investor Group also revealed yesterday its total funds under advice had risen dramatically to $3.9 billion, up almost 95 per cent over the past 12 months.
Investor Group’s directors announced yesterday they would recommend the group pay a total dividend for the year of 10 cents per share, up 25 per cent on the previous year.
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.
