WHK Group has posted a fall in earnings before interest, tax and amortisation (EBITA) and lower financial planning business revenue in the year ended 30 June, largely as a result of poor equity markets impacting on ongoing fees.
The group's EBITA fell 10 per cent to $36.6 million from $40.9 million the previous year. The lower earnings were mainly due to a 6 per cent decline in financial services division revenue to $91.6 million for the period.
"Financial services revenue was impacted by weaker local and overseas financial markets, fuelling continued caution towards non-cash investments by clients," the financial services company said in a statement to the Australian Securities Exchange.
But while demand in financial planning remained subdued due to uncertain global markets, WHK noted solid demand for other services such as self-managed super administration, risk and general insurance.
A WHK spokesperson told InvestorDaily the group's business transformation projects were on track to aid future growth.
"Our financial results are [also] showing positive signs in the accounting and advisory space - good upside ahead with advisory skills improving," the spokesperson said.
"Financial services face difficult markets, but there are plenty of bright spots in insurance and SMSF (self-managed superannuation funds)."
WHK remains optimistic about the longer-term outlook and plans to focus on business revenue growth for the next financial year by tightly managing cash flow from operations and improvement across its business services and financial services operations.
"The coming year will see a priority placed on organic revenue growth, shifting our business mix to more advisory services and providing a total financial solution to our clients," WHK Group managing director John Lombard said.
