DKN profit up, Count lifts stake to 7.1pc

Firm strengthens position

By Vishal Teckchandani
Tue 23 Feb 2010

A strong performance by Lonsdale and rising funds under advice has helped DKN deliver a 25 per cent rise in first-half underlying profit.

DKN Financial Group said its first-half underlying net profit after tax rose 25 per cent after funds under advice (FUA) jumped and its Lonsdale unit performed strongly.

Underlying profit after tax was $3.87 million for the six months to 31 December 2009, compared to $3.09 million in the same period in the prior year, DKN told the market yesterday.

DKN's preferred platforms saw net inflows of $306 million during the period.

The company had FUA of $7.75 billion at the end of the six months, up 16.8 per cent on the prior comparative period.

Lonsdale, a dealer group which supports over 100 financial planning practices, generated recurring revenue of $3.6 million during the six months.

"We continue to strengthen our position in the industry with a highly relevant offering that sees DKN draw new wealth management practices to the group against the backdrop of an extremely competitive environment, which is set to undergo many changes in the coming years," DKN chief executive Phil Butterworth said.

Additionally, rival Count Financial revealed in a market announcement yesterday that it boosted its stake in DKN to 7.10 per cent from 5 per cent.

Count's shareholding was raised on 18 February 2010. The company first took a 5 per cent position in DKN on 3 February 2010.

When asked about Count lifting its stake in DKN, Butterworth said: "I think it's a recognition from a competitor that the DKN model is well positioned for the future."

"Their current shareholding does not provide Count with any influence over the DKN business," Butterworth said.

DKN's shares ended 3.75 per cent higher at 83 cents on Monday.

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