CountPlus reports increase in adviser numbers and revenue

CountPlus has reported a 13 per cent increase in Count Financial adviser numbers for the six months to 31 December 2022, with the addition of 31 net new advisers for a total of 279.

In its half year results released on Monday, the firm declared that its reported revenues rose by 8 per cent to $45.4 million and reported contribution rose 13 per cent to $23.6 million.

Reported EBITA was down 50 per cent to $2.9 million, impacted by two non-cash adjustments following the completion of an operational review by CountPlus.

“After commencing in July 2022, I committed to personally visit each of our equity partners,” explained CountPlus chief executive officer Hugh Humphrey.

“Having completed an extensive operational review, we have made two non-cash adjustments to EBITA reflecting a discontinuing business, and the unrealised deferred sales proceeds related to a legacy transaction.”

The firm declared that it had “moved decisively” to discontinue the operations of Wealth Axis, which provided outsourced paraplanning and administration services to financial planning and accounting firms, but Mr Humphrey noted that CountPlus remained committed to its services segment strategy.

“CountPlus differentiates itself through its integrated accounting and wealth offering to clients. We are committed to supporting our firms with quality services propositions and have high-performance expectations on equity partnerships,” he added.

Adjusted EBITA, which includes the removal of once-off, irregular, and non-recurring items, the impact of business operations that are being discontinued, and corporate office costs, was reported to be up by 28 per cent to $5.0 million.

The firm noted that its wealth segment results, including net adviser growth as well as a 17 per cent increase in reported revenue to $8.4 million, were a highlight of the period.

“Today’s results, coupled with the executive appointments, evidence a deepening of our capability and momentum in execution of our growth strategy in our target segments,” Mr Humphrey said.

A fully franked dividend of 1.50 cents per share has been announced for the half-year period, the same as the dividend paid in 1H22. CountPlus said that this reflected its solid operating foundations. Following “significant acquisition activity” during the most recent half, the business retained a net cash position of $7.7 million.

“The strength of our acquisitions pipeline directly reflects our market appeal, and our enviable cash position provides the capacity to fund further strategic growth,” Mr Humphrey concluded.