Snowball Group expects earnings before interest, taxation, depreciation and amortisation (EBITDA) over 2009 to drop by 10 per cent, compared to 2008.
The forecast has been provided on the assumption that funds under advice (FUA) remain at a similar level as at October 31, 2008.
For 2008, Snowball has reported an EBITDA of $10.85 million, which excludes the contribution of acquisitions made during the year.
Snowball made five acquisitions, which are expected to contribute at least $2 million a year to EBITDA.
However, the group said it was difficult to give an accurate prediction of the results due to the challenging market conditions.
"Corporate super and insurance have performed strongly to date, however a large proportion of our revenue remains FUA-based and is directly impacted by investment markets," Snowball managing director Tony McDonald said at the annual shareholders meeting yesterday.
If the forecast is met, Snowball will maintain its dividend at 3.5 cents per share.
Despite many challenges, the current market conditions are also providing opportunities for the group.
"Our scale, efficiencies, diversified business and proven M&A strategy all contribute to our capacity and readiness to increase our footprint in what continues to be a growth industry, ripe for further consolidation," McDonald said.
The group is looking at a number of acquisitions, including the takeover of a Brisbane-based financial planning business, which it expects to complete by the end of this calendar year.
