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Countplus has announced it has settled transactions with senior management and employees of two subsidiary accounting firms for part equity buybacks.
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Countplus announces two equity buybacks
28 August 2015
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8 minute read
The firms are the MBA Partnership, from the Gold Coast, and Kidmans Partners from Melbourne.
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According to an ASX announcement, the buyback agreements were made in line with Countplus’ previously announced strategy of implementing a shared-equity model with its subsidiary firms. The firms were previously fully-owned subsidiaries.
A group of MBA Partnership employees and principals have taken a 40 per cent interest in their business and Kidmans Partners employees and principals, a 30 per cent interest.
Mr Phil Aris, chief executive officer of Countplus, said the strategy reflects the board’s view that a shared-equity model will create greater opportunities for Countplus, as well as for its member firms.
“Under a shared-equity model, our member firms stay independent, retain branding and keep entrepreneurial control, while ensuring their ability to grow, thanks to the backing of a major listed partner,” he said.
The proceeds from the buybacks, which will amount to $3.08 million, will be redeployed to fund future business growth.
“These include our subsidiary companies Advice389 and Blue789, both of which are tasked with identifying and forming shared-equity partnerships with successful businesses in the financial advice and accounting sectors, to the mutual benefit of both parties,” he explained.
Mr Aris confirmed that Countplus is continuing to pursue buyback negotiations with other wholly-owned subsidiaries and expects to agree further shared-equity partnerships over time.
Meanwhile, Countplus has announced a consolidated net profit after tax result of $9.9 million, down 12.2 per cent, which includes a $1.7 million gain on a property asset which was sold after balance date.
However, the company noted comparison figures for FY15 were negatively impacted by the run-off of the CBA loyalty payments.
Excluding these now expired payments and the one-off sale of the property asset, normalised net profit before tax was up 5.9 per cent.
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