Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper
CountPlus profit down 53%

The ASX-listed advice and accounting group posted a significant drop in net profit from $11.9 million to $5.5 million in its half-year results.

Released today, the results also show adjusted net profit attributable to shareholders jumped 65% to $4.1 million and cash at hand increased 37% on the previous 12 months to $27.6 million.

Count Financial recorded a 74% jump in EBITDA to $1.6 million however, due to the end of grandfathered revenue, the group expects earnings in the second half to be negatively impacted.

In a letter to shareholders, CountPlus chief executive Matthew Rowe said it is pleasing to report both the resilience of the CountPlus financial position and continued improvement of Count Financial.

"The results represent steady ongoing financial improvement, delivered by disciplined financial controls, diligent operational process, and a focus on deliverables in core businesses," Rowe said.

Count Financial noted a drop in adviser numbers over the 12 months from 284 to 238. It expects a further 40 advisers to join the licence in the second half of the year and notes it has 100 potential advisers in the pipeline.

Despite this, Count Financial reported a 73% increase in advice documents produced per adviser over the period.

Count Financial previously flagged it was moving to a user pays, fee-for-service licensee model borne by the adviser.

"A leaner, smarter Count Financial is driving hard towards its goal of being the natural 'clean' advice model for quality financial advisers," Rowe said.

"We know the demand for quality, efficient advice is not diminishing. As the challenges of the pandemic continue to drive client enquiry and assurance, household wealth across Australia continues to grow."

In addition, CountPlus completed six tuck-in acquisitions in the six months to 31 December 2020 including Ascent Private Wealth, Freedom Accounting Group, CBD Wealth Solutions and Arch Capital.

CountPlus will pay a fully franked dividend of 1.25 cents per share.

Read more: Count FinancialCountPlusMatthew Rowe
Link to something Y3rQdBMM