Record profits have been announced by WHK Group in its 2007/08 first half report, but it has warned volatile financial markets will likely impact its next results.
Australia’s fifth largest accounting group reported a best ever net profit after tax of $15.82 million, an increase of 28 per cent on the previous half-year result.
The Melbourne-based group’s financial services division underpinned its strong result with exceptional growth and performance.
New business inflows into the financial services division increased by 39 per cent to $472 million, compared with the corresponding 2007 period.
This contributed to funds under advice climbing to $9.17 billion at the end of 2007.
Revenue from financial services jumped to $29.78 million.
“In financial services, financial planning demand is expected to weaken from first half levels as financial markets are expected to remain volatile and dampen investor confidence,” WHK Group managing director Kevin White said.
“This outlook is expected to lead to lower new business inflows and related up-front commission income as new investments are deferred pending the return of more stable markets.”
White told InvestorDaily it was not a long-term worry for the group and it would continue its expansion by acquiring accounting firms and cross-selling financial planning services.
WHK Group has made 16 tuck-in acquisitions in 2008 and acquired three stand-alone member firms, bringing the total to 21.
WHK Group sees self managed superannuation funds (SMSFs) as an outstanding growth opportunity.
The number of SMSFs administered by the group has expanded by 12 per cent over the last 12 months to 9226 funds.
Revenue from the administration of these funds has increased to $7.15 million in the first half of 2008/09, a rise of 26 per cent.
