Slide 1: Full Year Results
For personal use only Full Year Results 25 August 2016 Phil Aris - Managing Director & CEO John Collier - CFO
Slide 2: Full Year Results Highlights
Full Year Results Highlights For personal use only Financials Record Net Profit before Tax: $21.8 million ( 2 67%) Record Consolidated Net Profit after Tax: 3 $14 million ( 41%) Earnings per Share: 12.13 cents ( 35%) CUP Dividends 8 cents (fully franked) declared and paid for 2015/16 First quarterly
Slide 3: Result Overview
Result Overview Core investment in Class Limited has been an outstanding For personal use only investment following its successful IPO Continued challenging conditions for accounting division Impairments in two of our accounting businesses Financial planning continues to grow with planning b
Slide 4: Group Performance – Member Firms
Group Performance – Member Firms For personal use only 2016 2016 % Change Accounting revenue $ ‘000 % of Total 66.2% of net Revenue member revenue Revenue: Financial planning Accounting 58,022 66.2% -0.4% revenue up 1.3% Financial Planning 20,340 23.2% 1.3% Property & related services revenue Proper
Slide 5: Group Performance
Group Performance 2016 % Change For personal use only $ ‘000 Total Net Revenue 87,617 (0.9%) Non-cash fair value gain relates to Class Limited shares which Non-cash Fair Value gain 16,294 N/A listed in December 2015. The Other income 2,396 (5.5%) shares have been valued at the closing price as at 30
Slide 6: Group Performance
Group Performance For personal use only 2016 Largest component of non- % Change $ ‘000 cash amortisation expense relates to acquired client relationships arising on Interest Expense (net) (1,293) 0.9% acquisitions. Reducing over time. Amortisation Expense (2,673) (4.7%) Higher tax expense primarily
Slide 7: Balance Sheet
Balance Sheet 2016 2015 % Change For personal use only $ ‘000 $ ‘000 Current Assets 29,061 33,766 (13.9%) Interest bearing loans reduced by $767K (3%) Current Liabilities 19,293 18,892 2.2% due to settlement of Current Ratio 1.51 1.80 commercial property sale and funds from the Non-Current Assets 90
Slide 8: Progressive Restructuring
Progressive Restructuring As previously advised, we are restructuring our business For personal use only model over a 3 year period May negatively impact earnings and EPS in short term Committed to a better and more enduring structure which aligns the interest of Principals & Shareholders Re
Slide 9: Dividends
Dividends For personal use only Dividends 2015/16 Cents Per Share Paid 1st Interim Dividend 2 cents 16/11/2015 2nd Interim Dividend 2 cents 15/02/2016 3rd Interim Dividend 2 cents 16/05/2016 2016 Final Dividend 2 cents 15/08/2016 Dividend Declared Cents Per Ex-Dividend Record Payment Share Date Date
Slide 10: 2016 Acquisitions/Investments
2016 Acquisitions/Investments Date Business Activity For personal use only Aug 2015 Hunter Financial Financial planning firm in Newcastle, NSW. 40% interest acquired by ADVICE389. Aug 2015 Australian Specialist SMSF administrator in West Perth, WA. Superannuation & 100% interest acquired by Bentleys
Slide 11: Class Super
For personal use only Class Super 11
Slide 12: Board Renewal
Board Renewal Two new Directors announced on 25 August 2016 (effective For personal use only from 1 October 2016): Alison Ledger Matthew Rowe Philip Rix will stand down at the 2016 AGM and will continue to lead Bentleys (WA) as the firm’s Managing Principal in Perth Our Chairman, Barry Lambert
Slide 13: Benefits of Joining Countplus
Benefits of Joining Countplus What are the benefits to accountants and other financial For personal use only services businesses in being a part of the Countplus network? Learning from Member Firms & gaining cross referrals; cash buyer and/or diversification; and growing business value at a listed
Slide 14: Direct Equity Plan
Direct Equity Plan Direct equity plan previously announced to the market and For personal use only employees Opportunity to acquire equity directly in business Countplus to retain controlling share Designed to: • Promote retention of key employees • Facilitate succession for Principals Pro
Slide 15: Growth Acquisition Strategy
Growth Acquisition Strategy Organic growth has been disappointing but remains our priority and For personal use only best prospect of delivering strong EPS growth Funding of acquisitions will predominately be funded from profits & borrowings CUP acquisitions will be: • Low risk tuck-ins: 100%
Slide 16: Outlook
Outlook For personal use only Our success will come from: • Improved performance by existing investments (our core focus) • Selective acquisitions by CUP, BLUE789 & ADVICE389 • Acquisitions will initially absorb our increased earnings and consume more debt (offset in part by progressive DEP) 16
Slide 17: The Countplus Network
The Countplus Network For personal use only 17
Slide 18: Full Year Results
For personal use only Full Year Results 25 August 2016 Phil Aris- Managing Director & CEO John Collier - CFO