Slide 1: Half Year Results
For personal use only Half Year Results 27 February 2013 Barry Lambert - Chairman Michael Spurr - Managing Director & CEO
Slide 2: The Countplus Network
The Countplus Network For personal use only 2
Slide 3: Half Year Result Highlights
Half Year Result Highlights Financials For personal use only Member Operating Profit: $11.5 million (up 8.4 %) 2 Group Operating Profit: $10.9 million (up 4.1%) 3 Net Profit before Tax: $8.7 million (up 2.5%) Net Profit after Tax: $6.0 million (down 13.0%) CUP Dividends Interim Dividend of 3 cents p
Slide 4: Guidance
Guidance Profit guidance remains 10% EPS growth for the full For personal use only year, subject to current business conditions being maintained. Dividends of 12 cents per share (3 cents per quarter) expected to be maintained for the full year. Principals – Evolution Advisers (Hunter, NSW) 4
Slide 5: Dividends
Dividends Dividends 2012/13 Cents Per Share Paid / Declared For personal use only 1st Interim Dividend 3 cents 15/11/2012 (paid) 2nd Interim Dividend 3 cents 15/02/2013 (paid) 3rd Interim Dividend 3 cents 15/05/2013 (declared) ChangeGPS (Brisbane, QLD) 5
Slide 6: Group Performance – Member Firms
Group Performance – Member Firms Revenue made up of For personal use only primarily of accounting Dec ‘12 % % and related services. $ ‘000 Rev. Change Financial (Dec’11) planning/services (FP) Total Net Member Revenue 48,800 100% 8.1% revenue makes up 21% of net group revenue Expenses: and property
Slide 7: Group Performance – Member Firms
Group Performance – Member Firms For personal use only Dec ‘12 % Change Head Office net cost $ ‘000 (Dec’11) is only expected to increase marginally Share of Associates Profits 152 in the second half of 2013. Head Office Contribution (net cost) (720) (573%) Group Operating Profit 10,940 4.1% Finance
Slide 8: Balance Sheet
Balance Sheet Balance sheet in For personal use only Dec’12 % Change strong position with net debt low $ ‘000 (Jun’12) and current ratio Current Assets 32,743 8.3% healthy Non-Current Assets 67,878 4.7% Debt has increased due to new Total Assets 100,621 5.9% acquisitions payments and Current Liabili
Slide 9: Recent Acquisitions
Recent Acquisitions Date Acquirer For personal use only Jul 2012 Kidmans Business assets of Melbourne based (Melbourne, VIC) Dyason & Associates Oct 2012 Countplus Group Adelaide (SA) based accounting & financial planning practice Hood Sweeney (25%) Jan 2013 Kidmans Business assets of Melbourne base
Slide 10: Hood Sweeney
Hood Sweeney 25% investment in South Australian professional For personal use only services firm, Hood Sweeney completed October 2012; First acquisition under Countplus’ new progressive investment model. 10
Slide 11: Acquisitions Strategy
Acquisitions Strategy “Tuck-Ins” by subsidiaries will continue For personal use only Minority interests may also be acquired in larger practices CUP has low debt and ability to use scrip where appropriate Marketing campaign launching to accounting (non-Count) firms Robson Partners (Gosford,
Slide 12: Acquisitions Strategy (continued)
Acquisitions Strategy (continued) Acquisitions will generally continue at 2 levels: For personal use only 1. Acquisition of minority stakes (30%+) at group level: Retiring partner Fund acquisition of fees Countplus could increase its stake over time 3. Tuck-ins by existing firms – up to 100% No
Slide 13: Equity Rewards
Equity Rewards Countplus intends to continue to reward employee loyalty and For personal use only performance through equity. The third grant of Employee Loyalty Shares will be issued in late March 2013. A loan funded share equity plan has also commenced to reward key employees of Member Firms
Slide 14: Future Growth
Future Growth For personal use only Group Efficiency - Member Firms learn from each other and develop best practice - Cost synergies (limited) - Accounting franchise Acquisition - Carefully targeted - Must be EPS accretive - May take form of “tuck-ins” by existing Members or minority stakes by group
Slide 15: Half Year Results
For personal use only Half Year Results 27 February 2013 Barry Lambert - Chairman Michael Spurr - Managing Director & CEO