Count Financial has warned that sluggish platform inflows will dampen the company’s performance in the second half of 2008.
The listed financial advice and accounting group reported net profit of $10.74 million in the half year to 31 December 2007 yesterday, a modest 13 per cent rise hampered by slow non-operating investment returns from the weakened share market.
Earnings before interest and tax (EBIT) were $15.32 million, up 26 per cent on the previous corresponding period. A second interim dividend of two cents was declared.
Fund inflows through Count’s platform arrangements with BT Financial Group, Skandia and Colonial First State rose slightly by 4.27 per cent in the six months to December to $7.76 billion, compared to a 15 per cent jump in the six months to December 2006.
“The very slow growth in investment funds under advice due to market conditions means 2H08 [second half] growth will be subdued,” Count said in a statement.
The results are the strongest indicator to date that the global credit crunch will slow the wealth management sector’s five years of unprecedented growth.
The projected full year EBIT guidance of $36 million, a 25 per cent increase, is unchanged.
Count chief executive Marianne Perkovic said despite the fluctuations in the market she is happy with the growth.
“It still is phenomenal and there is still good growth in platforms [which] are our biggest source of revenue,” Perkovic said.
Count will push ahead to list its acquisition arm Countplus through an aggressive buyout strategy.
Countplus will list when EBIT reaches $25 million.
Count will buy back up to 5 million company shares starting from February 15.
The group added 30 financial planners and 10 businesses in the last six months, bringing total authorised representative numbers to 921 and franchise offices to 422.
It will launch an accounting-based software program called Count Growth Profit System in April.
