Snowball positions itself for change
|
|
Listed financial services group Snowball has reported net profit of close to $1.8 million for the half year ended December 31, 2009.
The result represented a 39 per cent fall in net profit compared with the half year ended December 31, 2008, which the group attributed to one-off factors.
The acquisition of Officium Capital, for example, incurred $325,000 in one-off costs, while in the previous corresponding period Snowball took $732,000 in one-off profit on the sale of Outlook Tax & Accounting Solutions, as well as merging with NSW accounting firm, Duncan Dovico.
The group is hoping for a lift in net profit in the second half of this financial year, while noting an increase in earnings before interest, taxes, depreciation and amortization of 14 per cent to $592,000.
The group said the market rebound, contributions from previous acquisitions, and a “moderate increase in net fund flows” were the drivers of an improved operating result.
Snowball reported a 22 per cent increase in funds under advice, reflecting an improvement in new business inflows, acquisitions and positive market movements. But the group said while it had witnessed a general improvement in customer sentiment, its clients remained cautious.
Revenue was up 9 per cent to $1,126,000, but operating costs also increased by 6 per cent to $510,000.
The group’s interest expenses increased by 226 per cent to $208,000 as a result of previous debt-funded business acquisitions.
Snowball managing director Tony McDonald said the acquisition of Officium Capital and “re-investment in the business to address foreshadowed industry changes have been the major focus for Snowball in the first half”.
The group reported spending $190,000 on “costs incurred in pro-actively preparing for changes to the business model in light of proposed regulatory changes”.
The acquisition of Officium Capital was approved by shareholders at a general meeting held last Friday, February 12.
AUTHOR
Recommended for you
AFCA has revealed to Money Management the number of Dixon Advisory complaints it has closed so far out of the more than 2,700 total complaints received.
The Financial Advice Association Australia is launching a new brand awareness campaign that includes promoting the advice profession as an attractive option for career changers.
Half of financial advisers and wealth managers in Asia-Pacific plan to increase their clients’ exposure to private equity and multiprivate asset solutions, according to a survey by Schroders.
The former Iress chief executive has joined an NSW advice firm, Profile Financial Services, as an independent non-executive director.
