Countplus records 41 per cent increase in profits
Countplus has recorded a net profit after tax of $14 million, representing a 41 per cent increase from the previous financial year's figure.
In a statement to the ASX, Countplus said the increase was due to the fair value gain on its $11.4 million investment in SMSF platform Class, which was partially offset by a $2.7 million impairment expense and a higher tax expense relating to the tax deconsolidation of three member firms under its direct equity plan as well as the disposal of one member firm.
Countplus’ financial planning division recorded growth of 1.3 per cent across its member firms.
“Net financial planning revenue was up only 1.3 per cent over the period, and makes up 23 per cent of total net revenue,” the statement said.
“The group’s largest firm, Total Financial Solutions, continues to benefit from the impact of new firms joining their network.
“Including our associate Hood Sweeney, the Countplus Group has over $5 billion in funds under advice,” the statement added.
Countplus also reported on BLUE789 and ADVICE389, its growth initiatives designed to encourage investment in accounting and financial planning businesses respectively.
The statement noted that, due to non-recurring set-up costs in the first half of the financial year, both initiatives have contributed to high head-office costs.
“As acquisition progress has been slower than anticipated, after almost 12 months of operations a board decision was made in December 2015 to reduce management costs relating to these businesses,” the statement said.
“We maintain our commitment to these long-term initiatives by utilising existing resources within the company."
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