Powered by MOMENTUM MEDIA
Wealth firm demerging from CBA records $2.6m profit

Wealth firm demerging from CBA records $2.6m profit

Adrian Flores
— 1 minute read

A wealth business in the process of demerging from the Commonwealth Bank of Australia has posted a net profit after tax of $2.6 million in the second half of 2018.

According to an announcement on the ASX, the performance of CountPlus compares favourably to the $3.3 million loss it incurred in the first half of 2018.

CountPlus also achieved earnings before interest, tax and amortisation (EBITA) of $4.7 million for the six-month period, and expects the measure to improve as the profitability of member firms improves.

Advertisement
Advertisement

It said the strategy has been underpinned by disciplined financial controls, cultural and leadership change in its firms, governing the things that matter and a focus on its core business activities.

Further, the EBITA margin of CountPlus member firms rose to 18 per cent in the half-year ending 2018, up from 15 per cent for the same period in 2017.

“Within the CountPlus network, 10 firms achieved EBITA margin of greater than 18 per cent. The company is aiming to improve EBITA margins to 25 per cent in the medium term, which will also underpin our future profitability,” said CountPlus chief executive Matthew Rowe.

In addition, CountPlus member firm 360 Financial Advantage finalised terms to acquire accounting and financial advice firm Kerry Albert & Co, based in Coffs Harbour, NSW.

It said it has acquired the entire client base, excluding the audit fees generated by the practice, as well as the Count Coffs Harbour brand.

Kerry Albert & Co principal, Kerry Albert, will be retained as a consultant, while the existing firm staff will be offered roles, CountPlus said.

Mr Rowe noted the transaction highlights the focus of company’s merger and acquisition process.

“CountPlus is focused on investing in high-quality accounting and advice firm partners and this acquisition represents a solid partnership in the Coffs Harbour region,” Mr Rowe said.

In June 2018, CBA announced it would demerge its wealth management and mortgage broking businesses, creating a new entity named CFS Group.

 

Wealth firm demerging from CBA records $2.6m profit
investordaily image
ID logo

related articles

  • Major banks update home lending policy

    Two of the big four banks have updated their home loan serviceability assessment policy in response to APRA’s regulatory amendments. ...

  • Aus ETFs surpass $50bn

    The Australian exchange-traded fund industry has overtaken the $50-billion milestone, according to the newly published report by BetaShares....

  • Banking reputation at rock bottom

    One chief executive has said that the reputation of bankers was at rock bottom and hoped that it would not get any worse. ...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.