Hugh Humphrey

CountPlus Limited (ASX: CUP) today issued its Half-Year (1H23) financial results for the six months ending December 31, 2022.

The Company reported revenues up +8% for the half-year and contribution margin increased +13%. Wealth segment results were a highlight of the period with net adviser growth and revenues increasing +17%.

Reported EBITA was impacted by two non-cash adjustments following the completion of an operational review. “After commencing in July 2022, I committed to personally visit each of our equity partners. Having completed an extensive operational review, we have made two non-cash adjustments to EBITA reflecting a discontinuing business, and the unrealised deferred sales proceeds related to a legacy transaction,” CountPlus CEO Hugh Humphrey said.

Announcing that CountPlus has moved decisively to discontinue Wealth Axis operations, Mr Humphrey confirmed that CountPlus remains committed to its Services segment strategy. “CountPlus differentiates itself through its integrated Accounting and Wealth offering to clients. We are committed to supporting our firms with quality Services propositions and have high performance expectations on equity partnerships.”

Beyond the non-cash adjustments, CountPlus reported strong trading results in 1H23 vs 1H22, despite previously disclosed disruptions to resourcing in a post-pandemic environment:

• revenue increased +8%
• contribution margin increased +13%
• the Wealth segment net adviser numbers increased +31 and revenue increased +17%
• 1.4 million shares acquired through our share buy-back
• five acquisitions successfully completed in the Accounting segment.

The Company continued to deepen its leadership bench strength with Raelene Hinchliffe commencing as Group Head of People & Culture and Lisa Chambers appointed Group Chief Risk Officer.

“Today’s results coupled with the executive appointments evidence a deepening of our capability and momentum in execution of our growth strategy in our target segments,” said Mr Humphrey.

The business announced a 1.50 cents per share fully franked dividend payable for the halfyear period, which is the same as the dividend paid in 1H22 and reflects the solid operating foundations. After significant acquisition activity in 1H23, the business retained a net cash position of $7.7M.

“The strength of our acquisitions pipeline directly reflects our market appeal, and our enviable cash position provides the capacity to fund further strategic growth,” Mr Humphrey said.

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