Prime Financial Group expects to exceed full year profit guidance by 80 per cent following a flurry of merger activity and a 47 per cent jump in half year net profit.
Prime, a newly created entity between investment house Australian Value Funds Management (AVFM) and diversified financial group Prime Development Fund pulled off net profit after tax of $1.3 million for the six months ended 31 December 2006.
This was a 47 per cent increase on the half year ended 31 December 2005.
In an announcement to the Australian Stock Exchange yesterday, the group said it expects to exceed its full year profit guidance outlined in December 2006, estimating a net profit 80 per cent greater than the previous year’s net profit of $1.9 million.
The results do not include returns from the Prime Development Fund because the two groups merged on January 1 2007.
“We’re obviously very pleased with the 47 per cent,” Prime managing director Simon Madder said.
“It’s well and truly out-performed the market.”
Prime declared a half-year unrealised gain of 21.79 per cent in its Australian equities retail fund. The group bought a 40 per cent stake in boutique fund manager Armytage Private Limited in July.
The group is undergoing due diligence to acquire 40 per cent of Lateral Thinking, which consists of three financial planning practices.
Through its equity stakes in accounting and financial advice practices, Prime expects above average new fund flow to superannuation and funds management due to the government’s super reforms.
“We’re very encouraged from the recent super changes,” Madder said.
“The activity we’re seeing in this space is very significant – clients are very well informed about it.”
The Melbourne-based group owns around 45 per cent of 28 accounting and financial advisory firms across Australia and manages around $3 billion in funds.
