Sydney - Monday - November 10: (RWE Australian Business News) - Count Financial Ltd (ASX:COU) 2008/09 profits will be negatively affected by market conditions, executive chairman Mr Barry Lambert warns in his address to be given at the annual meeting in Sydney today. However, Count remains well-positioned to benefit when equity markets resume their long-term growth via "Count's financially sound and trusted accounting-based financial services network". Mr Lambert advises that in current market conditions it is almost impossible to accurately estimate profits for 2008/09. However, in the interests of providing investors with some guidance, he will tell shareholders that if Count's funds and loans under advice remain unchanged for eight months from October 31 levels, it is expected Count's EBIT will be "down less than 20pc" and EPS "down less than 10pc", although its FUA traditionally outperforms the index. He also says the company is not in a position to give any indication as to 2008/09 dividends, except that it is most unlikely it would be increased despite Count holding adequate retained earnings. This is because Count requires increased funds over the next two years to fund Countplus acquisitions and other opportunities, as well as meet regulatory requirements. On the other hand the board does not expect dividends to fall below the 2007 level of 8c. Once Countplus is listed and becomes self-funding, Count expects its dividends to grow significantly as it would be in receipt of growing dividends from Countplus. Mr Lambert confirms Countplus is meeting expectations. Countplus has acquired an initial strategic interest in nine accounting firms to date with firms continuing to enter the acquisition process. Three "tuck-ins" have also been completed. Despite poor capital market conditions, Countplus remains very confident of achieving the $25m EBIT target prior to listing Countplus. The initial acquisitions have budgeted 2009 EBITA of almost $10m with a growing pipeline of prospective acquisitions. Managing director and chief executive Ms Marianne Perkovic will release Count's key performance indicators up to October 31. Count’s Combined Funds and Loans under Advice (FLUA) stands at $14.81bn, down 18.9pc over the last 12 months. Ms Perkovic also outlines how Count is strongly positioned to grow in the accounting, financial planning and Self Managed Superannuation Fund markets.
COU Price at posting:
$1.14 Sentiment: Buy Disclosure: Not Held
