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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Ms Chambers brings significant commercial risk expertise and a strategic mindset to the CountPlus business, having held numerous senior leadership roles in financial services. Most recently, she served as the General Manager of Australian Executor Trustees (AET), running one of Australia’s leading private trustee companies across multiple business lines. AET oversaw more than $6.9 billion in funds under management, and Ms Chambers was integral in leading the team that sold the business from Insignia to Equity Trustees in 2022 for $135 million.

Prior to that, she held senior executive roles at National Australia Bank, Commonwealth Bank, Colonial First State and BT.

Hugh Humphrey, Chief Executive Officer at CountPlus, said Ms Chambers’ appointment was a terrific outcome for the business.

“Lisa has a deep understanding of the advisory profession, which is vitally important given the magnitude of work we’re doing to deliver for our Member firms and their clients.”

Ms Chambers said she was excited to be joining CountPlus and helping to build on the success of the business.

“CountPlus is an outstanding business with a culture built around its clients. I’m looking forward to this new challenge and working with a leadership team focused on delivering positive financial outcomes for more Australians.”

Ms Chambers will commence in the role on 27 March 2023.

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Ms Hinchliffe brings significant capability and experience in financial services to the role. She has previously held senior Human Resources positions at AMP, the Commonwealth Bank, News Corp and global professional services firm, Marsh McLennan.

Hugh Humphrey, Chief Executive Officer at CountPlus, said Ms Hinchliffe’s appointment would deliver significant strategic benefits to their national community of Member firms. “Raelene is a fantastic addition to our business and will spearhead leadership development and the deepening of the culture and capability of our people. We are a growing network of more than 3,400 people and the People and Culture function has never been more important to our strategy.”

Ms Hinchliffe said she was excited to be joining CountPlus and helping to build the success of the business.

“The opportunity to work with a leadership team and a Board that are committed to making a difference in the lives of the people they employ and partner with is very exciting. I’m looking forward to taking on this role to help shape and grow CountPlus.”

Ms Hinchliffe will commence in the role in January 2023.

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Amreeta Abbott

Count Financial has announced an exclusive partnership with Annature to provide integrated eSigning and ID Verification software solutions to its national community of financial advisers.

Annature is an Australian technology company innovating eSigning, ID Verification and payments built on blockchain technology. The platform, underpinned by ISO 27001 certification, creates a more efficient e-Signing and ID Verification process for advisers and their clients, digitising unpopular printing and scanning processes.

The exclusive partnership continues Count Financial’s recent focus on delivering technology-led solutions to its Member network, with a strong focus on streamlining the advice delivery process and moving to simplified, digital solutions.

Reg Gabila, Head of Licensee Systems at Count Financial, said the partnership with Annature would deliver numerous adviser and client benefits.

“We are delighted to be introducing Annature’s platform because we know how important efficiency is to our Member firms. By removing the requirement for manual processes for signatures and identify verification, advisers can spend more time in front of clients and add value. There is a need for high-quality advice to be more readily available to more Australians, so we’re committed to increasing the capacity of our network and ensuring more people can speak with an adviser.”

Amreeta Abbott, CEO at Annature, said she was excited to be partnering with Count Financial, given the philosophical alignment between the two businesses.

“Count Financial is a leading player in the advice space thanks to its commitment to technology and innovation. Our exclusive partnership is a natural fit, aligning our entrepreneurial mindsets and delivering fresh new ways to do business better. We’re delighted that Count Financial’s advisers and clients will benefit from our award-winning eSigning and ID Verification platform.”

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Matthew Rowe

Sydney, July 14: CountPlus Limited (CountPlus) has announced that Member firm Unite Advisory Pty Ltd (Unite) has finalised terms to acquire and merge with Bentley Brett & Vincent (BBV), an accounting and financial advisory firm based in Coffs Harbour.

The transaction strengthens the team at Unite and the service they provide to the mid-north coast community. The acquisition of BBV is structured as an initial cash payment of $1.445 million, with further deferred payments linked to incentive criteria in 12 and 24 months with a total maximum purchase consideration of $1.7M.

As part of the merger, Veronica Bruce, Director at BBV, will join Victoria Studley and Hilary Acheson as a Principal and shareholder at Unite. Ms Bruce will also become a financial adviser within Count Financial’s national advice community.

Matthew Rowe, Chief Executive Officer and Managing Director of CountPlus, said the merger was an example of the opportunities that come from the ‘Owner, Driver – Partner’ model which then leads to positive client outcomes.

“The acquisition and merger of Unite and BBV is another example of how we identify and invest in quality people and businesses. The existing clients of Unite and BBV will have access to a larger team with substantial experience in accounting and financial advice services. Both businesses understand the unique challenges faced by people in the mid-north coast and will come together to continue meeting those needs.”

Victoria Studley, Managing Director at Unite, said the merger would be a good cultural fit for the business that also bolsters the services available to clients in their community.

“BBV is a quality practice that has always focused on developing lasting partnerships with their clients. We are excited to bring our businesses together and continue our ‘grow with certainty’ philosophy.”

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Tania Tonkin

Count Financial Limited (Count Financial) has announced that two Adelaide-based firms have joined its national advice network. Adelaide Private Wealth and DMCA Advisory are the latest firms to join the CountPlus-owned network, which has now appointed 25 new firms since the start of 2021.

Describing their reasons to partner with Count Financial, Hamish Zerbe, Director and Financial Adviser at Adelaide Private Wealth, said the search for a new licensee was long and rigorous to ensure the right outcomes for their clients.

“We are very excited to be partnering with Count Financial after an extensive 12-month review of licensee options available within the Australian market. When we set about looking for a new licensee, the most important factor was to find the right cultural fit and a shared ‘client first’ philosophy. We are confident that the team at Count Financial will assist us to offer exceptional service and quality advice outcomes to our clients.”

Tania Tonkin, Director and Strategic Financial Adviser at DMCA Advisory, said their decision to join Count Financial was largely due to the licensee’s innovative approach to advice delivery.

“We chose Count Financial due to their strong focus on innovation and technology to achieve better client experiences as well as the fact that they operate a clean model which is not aligned to any financial institutions. They were able to show us how their tech solutions improve the advice delivery process, which will enable us to operate more efficiently as a result.” 

Andrew Kennedy, Chief Advice Officer at Count Financial, said that both the new Adelaide-based firms were welcome additions to their adviser network.

“Adelaide Private Wealth and DMCA Advisory are both high quality firms with reputations for being client focused. At our recent Annual Conference in Sydney, we saw the power of Count Financial’s renowned sense of community, and these firms will be a great cultural fit with our broader network as we conduct more events throughout the year.”

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Matthew Rowe

CountPlus Limited (CountPlus) has announced a 51% investment in Wealth Axis, a boutique provider of paraplanning, technology and administration support services to financial planning firms across Australia.

The acquisition enhances the range of services that will be available to CountPlus and Count Financial’s national network of Member firms. This investment aligns with the CountPlus commitment to delivering service solutions that simplify and expedite the advice process.

Mikel Guyetsky will remain as Managing Director of Wealth Axis and CountPlus will make a capital investment to fund future growth and capability. The partnership with CountPlus will support Wealth Axis as it seeks to build long-term scale in delivering efficient solutions for financial planning firms and licensees. The investment in Wealth Axis will benefit existing clients through additional resources, scale and access to best practice capabilities.

Matthew Rowe, Chief Executive Officer and Managing Director of CountPlus, said the acquisition would create positive outcomes for clients, given the important role that these complementary services play in the overall advice process.

“We understand the importance of creating efficiencies in how we deliver advice so that advisers and their clients have a positive experience. Wealth Axis has a strong reputation for providing services that reduce costs and complexity for financial services businesses which provides real value. Importantly, they are also a business with shared values to CountPlus and their client-first mentality makes them a good cultural fit.”

Mr Rowe also highlighted acquisitions like this were evidence of the importance of being a financially sustainable business with the capacity for strategic growth.

“We speak openly about the need for a strong financial position to navigate the current dislocation in financial advice, and we understand our strong financial position provides certainty and stability to our member firm network and clients of Wealth Axis.”

Wealth Axis assists in reducing the cost and time burden of compliance and administration for financial advice firms by providing outsourced services in Paraplanning and Administration as well as technology systems and processes to leverage this service. Services include – implementation paperwork, applications, preparation of review reports, statements of advice, research assistance and revenue/brokerage administration. The business also provides technology support around implementing and customising advice technology solutions as well as reg-tech data solutions.

“CountPlus has shown that we are doubling down on our commitment to advice for the long-term, bucking the trend of exits across the financial advice industry,” Mr Rowe added.

Mikel Guyetsky, Managing Director at Wealth Axis, welcomed the investment by CountPlus and the benefits it will bring to clients at a time when quality advice is more important than ever.

“At Wealth Axis, we are passionate about what we do because we know the direct impact our service plays in delivering financial wellbeing to Australians. To be become part of the CountPlus community is an important milestone in our history and will enable us to build on our success and take our offer to the next level.”

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Matthew Rowe

CountPlus has continued its focus on strategic growth, with Melbourne-based Member firm O’Brien Accountants & Advisers (O’Brien) announcing it has completed a tuck-in acquisition to acquire the accounting services of Hillard O’Donnell and Associates (Hillard O’Donnell).

As part of the transaction, Damian O’Donnell (Principal at Hillard O’Donnell) will acquire an equity interest in O’Brien under the CountPlus Owner-Driver, Partner model.

Consideration for the acquisition is $570,000, with an initial upfront payment and the remainder to be paid in 12 months and 24 months based on minimum revenues obtained.

Matthew Rowe, CEO and Managing Director at CountPlus said that the transaction was a positive result for the respective teams at O’Brien and Hillard O’Donnell.

“There is a natural alignment and cultural fit between O’Brien and Hillard O’Donnell. Both businesses have robust capabilities within their team and strong reputations in their respective communities. Hillard O’Donnell has a client-centric service offering which is a central tenet of alignment with the CountPlus values and purpose.”

CountPlus’ shareholding in O’Brien is unchanged from the transaction.

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Matthew Rowe

The first ever virtual Annual General Meeting of CountPlus Limited (ASX: CUP) yesterday heard a reiteration by the Company of its strong underlying financial position and targeted growth plans.

Deliberate operational focus and a disciplined approach to strategy helped the Company to deliver a Net Profit After Tax (NPAT) of $5.95M for the June 30, 2020 financial year. This compares with the previous NPAT result of $3.68M for the same period in 2019.

Yesterday’s update to investors revealed improvements to key financial metrics for the Company to 30 September, 2020. These include gross cash at hand of $27M combined with a debt facility of $25M to pursue strategic investment in core-related business opportunities; in “tuck-in” acquisitions and in other Owner, Driver-Partner growth opportunities.

For Count Financial, significant progress has been made across a range of key metrics as the Company focuses on efficiencies in the advice delivery process and a concurrent 39 per cent uplift in revenue per adviser.

“Investors yesterday heard that CountPlus, through its operational focus and financial discipline, is on track with its stated vision to become Australia’s leading network of professional accounting and advice firms,” said Chief Executive officer and Managing Director, Matthew Rowe.

“This is despite the currently challenging economic conditions, resulting from the COVID-19 pandemic. We remain confident that the Company can weather these challenges, but also take advantage of the numerous opportunities for growth we see in the dislocating financial advice sector,” he said.

Mr. Rowe confirmed a renewed Count Financial value proposition to financial advisers under a ‘clean’ client-focused licensee model had attracted record numbers of inquiries from financial advisers looking to join the network.

“At the time of this presentation we have had formal inquiries from 240 financial advisers seeking to join Count Financial. We remain vigilant with our growth plans and only 3 out of 5 financial advisers who get to due diligence stage are meeting required standards to be invited to join.”

Mr. Rowe concluded that CountPlus has the capital and capabilities to take advantage of opportunities that arise as the Company’s chosen markets “experience significant dislocation, headwinds and succession challenges”.

“We have in place the pre-requisites for prudent and selective expansion and look forward to updating the market on activities as they unfold,” Mr. Rowe said.

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Most recently, Colley was Chief Operating Officer of Faethm Pty Ltd, a global Software-as-a-Service augmented analytics platform which enables companies, governments and educators to understand the impact of emerging technologies on the Future of Work.

Ms Colley has also worked with the Banking and Insurance Group of KPMG and BT Financial Group and was Chief Operating Officer of both Asgard Wealth Solutions and St. George’s Wealth Management division. Post the integration of St. George with Westpac in 2009, Colley also worked at Macquarie Bank where she was Head of Strategy for Macquarie Advisor Services and then Head of Personal Banking.

Colley currently holds a number of other Director roles, including an Independent Non-Executive Director of the subsidiary settlement and clearing boards of the Australian Securities Exchange (ASX), an Independent Non-Executive Director, Member of the Audit and Risk Committees and Chair of the Board Claims Review Committee of OnePath Custodians and Oasis Fund Management, IOOF’s Superannuation businesses and an Independent Non-Executive Director and a Member of the Information Technology and Human Resources and Remuneration committees of ASX- listed salary packaging and leasing business Smartgroup (ASX:SIQ). She is also a Director and Deputy Chair of Liverpool Neighbourhood Connections, a community based not for profit organisation.

CountPlus CEO Matthew Rowe said that Ms Colley’s appointment was a fantastic addition to its Board.

“Carolyn’s resume clearly speaks for itself and I’m delighted that she has joined our Board of Directors. Her experience in financial services and technology will be key as we continue to drive new, smarter ways of doing business within our accounting and advice member firms. Carolyn will also Chair our newly formed Technology and Innovation Board Committee to ensure that this business function has dedicated leadership and vision.”

Colley’s appointment means that the CountPlus Board is now comprised of 50% female directors.

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