Count to have over 550 financial advisers upon completion of Diverger transaction
In its first-half update for the 2023–24 financial year, chief executive Hugh Humphrey said the firm recorded a “strong performance” as it simultaneously delivered one of the most “significant transformations” in its 44-year history.
“Count continues its strategic execution to build capability and drive growth across our three segments of accounting, wealth and services. These results are a strong endorsement of this focus, with the most exciting phase still to come as we complete the acquisition of Diverger on 1 March,” Mr Humphrey said in a filing with the ASX on Tuesday.
Count’s revenue increased by 6 per cent compared to the prior period, driven by both organic and acquisitive growth, while its underlying EBITA added 9 per cent to $5.4 million and statutory profit surged 135 per cent to $2 million.
“These results, highlighted by an increase in profit and cash earnings, continue the strong momentum we recorded in the second half of FY23. The strength of our financial position and enviable acquisitions pipeline means we are well-positioned to achieve further strategic growth,” Mr Humphrey said.
The firm noted that the Diverger transaction is on track to be completed on 1 March 2024, following which its adviser count will increase to over 550 from the current 365.
The Federal Court approved Count’s acquisition of Diverger earlier this month. At the time Mr Humphrey said: “The completion of this milestone confirms our previously announced strategic growth ambitions through the acquisition of Diverger. This is a pinnacle moment in our 44-year history which will transform Count into a larger, more diversified business.”
He added that the expanded business would be able to deliver added benefits to its national network of accountants, financial advisers, and their clients.
“Our members and their clients will have access to a range of new services offered by Diverger, along with the scale benefits that come from being one of Australia’s largest integrated accounting, wealth and services providers,” Mr Humphrey said.
In its half-year statement, Count said its current funds under advice sit at $17.9 billion, with this expected to grow to $29.9 billion following the completion of the acquisition.
Count also noted that it is accelerating the transition of Affinia advisers to the Count AFSL following the completion of that transaction in May 2023, with Affinia advisers said to transition to the Count AFSL over the next six months.
Count's accounting business also performed well in 1H24, delivering a 20 per cent increase in underlying EBITA compared to the prior corresponding period. The accounting EBITA margins increased to 21 per cent, despite a challenging economic environment and continued cost-of-living pressures.
