Countplus Limited (ASX: CUP) reported a Consolidated Net Profit after Tax result of $9.93 million. The result included a gain of $1.7 million on a property asset which was sold after balance date.
The Directors declared an interim quarterly dividend for 2016/7 of 2 cents per share, fully franked and payable on 16 November 2015.
The comparison figures for FY15 were negatively impacted by the run-off of the CBA loyalty payments in the prior year. Excluding these now expired payments and the one-off sale of the property asset, normalised net profit before tax was up 5.9%.
Strategy
Countplus has begun implementing its strategy of offering principals and senior employees of member firms the opportunity of buying directly into their existing businesses.
Per the ASX announcement of 21 August 2015, Countplus successfully completed two shared-equity buy-backs under the group’s Direct Equity Plan, with member firms MBA Partnership (Gold Coast, QLD) and Kidmans Partners (Melbourne, VIC). A third firm is expected in coming weeks.
In addition, the newly-created subsidiary of Countplus, Advice389, agreed a shared-equity partnership with Newcastle-based advice firm Hunter Financial in early August. Advice389 has acquired a 40% stake in the firm.
In line with its strategy to support subsidiary firms with industry-leading technology and diversify its income stream, Countplus increased its shareholding in Class Pty Ltd (Class Super), a leading-edge technology business serving the self-managed super sector.
Class is now profitable and paying dividends. It is expected to list on the ASX later in the year. Countplus is the largest institutional shareholder in Class, with a 4.8% interest in the company.
Commentary from Countplus:
“These annual results reflect a challenging trading environment in the small business sector, which is the target client base of our member firms,” said Mr Phil Aris, Chief Executive Officer of Countplus.
“Our results were supported by the diversification in our portfolio of businesses.” Mr Aris said, “This is reflected in our operating financial planning revenue increasing by 8% and property related revenue up 19%. We will continue to focus on organic growth and diversification which should see improved performance into the future.”
Mr Aris said that the 3 successful shared-equity buybacks under the Direct Equity Plan demonstrate that Countplus’ strategy of pursuing the shared-equity business model with member firms is meeting prevailing market needs and provides better alignment for Member Firms to grow.
“We are able to re-deploy funds from the buy-backs to assist in funding our new initiatives, Advice389 and Blue789,” Mr Aris said, “As demonstrated by Advice389’s first investment in Hunter Financial.”
Source: Countplus
