Snowball grows despite winter of discontent
Listed financial services firm Snowball Group has forged its second advice alliance in as many months after announcing it has struck a deal with Sydney-based planning practice Dunhill Financial Services today.
The addition of Dunhill into the Snowball stable pushes the latter’s funds under advice to over $900 million and adds to a similar arrangement with former-Securitor aligned dealer group, Aspire Financial Services, in October.
These two alliances, in addition to the merger late last year with boutique Sydney financial planning firm, The Ferguson Group, have seen Snowball increase it funds under advice by almost $350 million over the past 18 months.
“Dunhill’s existing business relationships are a neat fit with the Snowball model, which seeks to integrate financial planning, accounting and tax advice, insurance, workplace super and self-managed super funds into one offer,” Snowball managing director Tony McDonald said.
Meanwhile, in an address at the group’s annual general meeting, Snowball chairman Andrew Brown said the group was looking to position itself in the market by offering what he termed, “enterprise advice”.
Part of this initiative will see the group focus on member based organisations, with the aim of delivering tiered service to meet members’ respective range of advice needs, and according to Brown the group is in discussion with one “significant member based organisation”.
The firm had a bottom line loss of $2.17 million for the 2004 financial year, and Brown said it was also anticipating a $1.25 million loss for 2004/05 largely due to $1.45 million of non cash amortisation and $250,000 of depreciation.
Despite this however Brown stated the firm was now better placed than it had been in recent times.
“There is little question that the senior folks in the company have really stepped up to the mark in the past year and a bit, cleaning up some of Snowball’s past issues, and putting the firm on a firmer growth path,” Brown said.
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