ACCOUNTANTS OPPORTUNITY The changing face of personal advice Barry Lambert R MANAGING DIRECTO Barry Lambert FOUNDER AND EXECUTIVE CHAIRMA N “ Nearly 30 years ago most Accountants let a whole new industry – personal financial advice – slip by. Over this time, not only has Count steered a ‘wreck free’ course for Accountants, but it has created many unique opportunities and today is undoubtedly the most respected name in the personal financial advice space. Today, Accountants have an opportunity to re-capture that market due to changes in the way advisers are being ” paid and the poor reputation of non-Accountant Advisers. Take a moment to see how we can help you. “Increasingly clients look for the value-add from their professionals, and Count Advisers continue to be ideally positioned to deliver quality advice as they service the needs of clients, through their life stages. Count takes great care to accept the highest quality professionals from around Australia to join Count and we work together in partnership.” Value adding business services – Marianne Perkovic, Count Chief Executive Officer and Managing Director Marianne Perkovic CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR Our AFS Licence Count’s sound and structured process has ensured Count’s NEW that the investment failures and collapses over the last Count Financial Limited (Count) is Australia’s largest few years such as Westpoint, Basis Capital, Fincorp, accounting platform independently-owned franchised network of financial Australian Capital Reserve, Great Southern and unlisted planning/wealth accountants and advisers. Count has property syndicates have NEVER been on our Approved Count recently released CountGPS, a $14.38 billion of approved clients’ funds and loans Product List. new operating platform for Accountants, under advice and is listed on the Australian Stock in association with one of our Count Exchange (COU). Franchisees. “As a result of Count’s robust and transparent research process, CountGPS is an internet-based system that assists ”CountGPS provides an essential accounting Count’s sound research process investments on our APL have all passed accounting firms to grow their revenue, systemise infrastructure, and importantly, the best Count’s research philosophy is to provide Count Advisers the same strict tests. This disciplined their accounting and legal procedures and reduce practice website, tools and resources let us with an independent and comprehensive approved approach allows Count partners’ work load – resulting in an increase in spend more time in front of clients” product list, enabling them to provide appropriate efficiency and profits. – Paulette Hendy, CPA to highlight investments Cantwell Financial Independence recommendations to their clients. that will deliver sound CountGPS has been created by Chatswood NSW Count’s rigorous and proven research process ensures returns, better service accountants, for accountants. that only those investments with the highest ratings are and reduced risk to the Notably our venture partner has used CountGPS included in our Approved Products List (APL). client.” to drive efficiency and profitability to the extent – Rachel Griffith that they are now one of Australia’s most profitable Rachel Griffith Senior Executive Product and Research SENIOR EXECUTIVE PRODUCT AND RESEARCH accounting firms. CountGPS brings everything you need under one What Count Franchisees think about Count roof, including documents, templates, worksheets and checklists, access to online legal documents Brand Management conducted independent research across the industry. Count Advisers rated Count’s service, support including Trusts, Wills, and Business Agreements and overall business relationship well above industry average. and Practice Management and volume pricing tools. All the systems your accounting business requires Have you experienced profit growth in your business 83.1 and from the one trusted provider. in the past 12 months? 89.9 Leverage off already proven systems: spend Do you feel valued time doing what you do best as an adviser within 83.3 your dealer group? 71.3 Internet based: keep business flexible with easy access for multiple offices Would you say you are loyal 92.6 to your dealer group? 80.0 No special software required Framework templates for delivering Is your dealer group focused 88.1 on your needs? key service areas 65.7 Compliance Services: Accounting and Taxation Do you feel your 89.7 Business Structures: Trust Establishments, dealer group helps you develop your business? 72.4 Business Agreements Tax advice: Quickly and cost effectively answer 0 20 40 60 80 100 commonly asked questions by clients Count 2008 Industry 2008 Ease of use: It’s simply to use, and it works! Source: Licensee Research 2008 Brand Management 2 3 “Countplus enables good accounting businesses to list on the “As well as strengthening Count’s existing lending ASX. It grew from a desire to service our existing franchisees, services, finconnect’s objective is to offer an exceptional but is open to any good accounting business. Countplus opportunity for both finconnect and Count Franchisees to is unlike any other model in that firms participate in listing expand their businesses and provide new levels of service uplift, all employees receive equity subject to performance, to clients.” there is no requirement to change firm name or management, – Tanya Sale, finconnect General Manager and – importantly – Count will keep it independent.” – Barry Lambert, Countplus Chairman, Count Founder and Executive Chairman MAN (L); BARRy LAMBERT, COUNTPLUs CHAIR ER (R) Tanya sale JEREM y WARDELL, CHIEF EXECUTIVE OFFIC finconnect GENERAL MANAGER All loans outstanding 5 4 $billions (pa) 3 List your business on the ASX Countplus Listing Outsourced loan service 2 Countplus™ is a professional services firm aggregator Countplus expects to list at the end of 2010 with around 2008/09 has seen: 1 seeking to acquire primarily accounting firms to list on 20 fully owned businesses. The IPO is expected to A combination of the Federal Government doubling the ASX via Countplus and to evolve into a best practice raise $15-$20M and it is proposed that existing Count 0 the first home owners grant for existing dwellings and Jun 00 Jun 01 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Jun 08 Jun 09 accounting and wealth advice network. shareholders will receive an entitlement to take up all trebling for newly built homes; the shares in the public offering. The Countplus business model is unique because it The Reserve Bank of Australia lowering the cash is based on a staged buy-out process pre-listing, the Count will underwrite the IPO and remain Countplus’ interest rate to a 49-year low of 3% in a bid to In February 2009 finconnect was a winner in the structure of which provides incentives for profitable largest shareholder post listing and Count will cushion the economy from the global economic category ‘Wholesaler/Originator Aggregator of the Year’, growth while minimising business and integration endeavour to use its resources to ensure Countplus is a downturn; at the MFAA 2009 Excellence Awards. A testament to risks. From a wealth creation perspective Countplus success. Lenders withdrawing from the market; our Members and Lending Managers. provides a mechanism for Principals to obtain a listed The tightening of lending policies; and market valuation of their business by participating in the Countplus investee firms: Contraction of the commercial market due to lack of expected value uplift when Countplus lists. available funding. Lawrence Business Management – Perth, WA Importantly Principals retain day to day management All these changes present an exciting opportunity – an The MBA Partnership – Gold Coast, QLD responsibilities and firm branding as well as benefiting opportunity for the professional sector to really make from an ongoing incentive scheme post listing that HMA Twomey Patterson – Regional, NSW their mark in the lending arena. rewards both Principals and employees. Bentleys RLF – Perth, WA There has been an exodus of mortgage brokers from This model is unlike the accounting consolidators that the industry which clearly indicated that they did Beames and Associates – Canberra, ACT not have the necessary structures in the business have gone before who appear to have been focussed on size and merging of businesses. Countplus is Specialised Business Solutions – Brisbane, QLD to sustain a downturn. This is contrasted with the about quality and not size and post listing will resume Franchisees of Count and finconnect who, as a controlled growth largely financed by the IPO and Mogg Osborne – Regional, VIC whole, have appreciated the value of having a wider retained earnings. In the early years Countplus will aim customer service offering for some time by having in Crosby Dalwood – Adelaide, SA to purchase 5%-10% pa EPS growth. Organic growth place additional income streams other than their core should average around 10% pa giving a targeted EPS Cooper Reeves – Brisbane, QLD business. average growth of 15+% pa plus fully franked dividends. MBT Accounting Services – Sydney, NSW More and more of the general public will turn to those From left: Marianne Perkovic, Tanya Sale, To date Countplus has acquired a minimum of 25% they trust in this environment such as their Accountant. Barry Lambert in 13 accounting/financial planning businesses with Evolution – Newcastle, NSW This is the market in which finconnect sits. finconnect combined revenues of $45M. It has an option to membership continues to grow across Australia due to Robson – Gosford, NSW acquire the balance of their equity for Countplus shares its wide range of lending and finance solutions and its “We are first and foremost Chartered on agreed terms from 1 July 2010 prior to listing the Achieve Corp – Canberra, ACT market position in the professional sector. As a wholly Accountants, but the finconnect offering we business. owned subsidiary of Count, finconnect distinguishes provide for our clients is a valuable addition itself from many finance providers by its strong parent – this service works extremely well for our and maintains its independence by not being tied to any business and clients” loan provider or product. – Gerry Farlanga CA Arnold Stevens Finlay, North Parramatta NSW 4 5 “We are very focused on helping Count Members achieve their “Our strong financial track record has allowed Count goals in building successful financial planning businesses. to provide significant value back to Members through We have a proven model to help Count Members grow our equity plan (accrued under the Franchise Incentive their business with full online support and ongoing key Options Program) over the medium to long term.” performance indicators.” – Michael Spurr, Chief Financial Officer – Pauline McFarlane Senior Executive, Business Development & Marketing Pauline McFarlane Michael spurr OPMENT & MARKETING CHIEF FINANCIAL OFFICER sENIOR EXECUTIVE, BUsINEss DEVEL Members of the highest quality. Our Track Record Advisers you can count on! Count’s History Incorporated > August 1980 as a private company Listed on Australian Stock Exchange > 12 December 2000 Consecutive Profits > 29 years Financials Pre-Listing Post-Listing 1999 2000 2001 2002 2003 2004 2005* 2006 2007 2008 2009 Earnings before interest, 2.93 4.12 5.88 6.15 8.06 10.85 15.6 23.18 28.92 33.42 23.43 investments income and tax (EBIT) ($M) Net profit after-tax ($M) 3.37 3.88 4.05 4.72 5.87 9.01 11.53 17.6 22.69 21.30 19.37 Dividend paid and 2.50 3.36 4.40 4.84 5.26 7.74 10.28 14.02 19.21 22.03 25.66 proposed ($M) Earnings (¢ per share) 2.15 2.68 4.10 5.12 7.60 9.53 8.70 7.60 Dividend paid and 2.20 2.42 3.50 4.50 6.00 8.00 10.00 7.00 proposed (¢ per share) Our Franchisees: Evolution Wealth Our Franchisees: Cooper Reeves * Indicates adjusted for new International Accounting standards (IFRS). Evolution Business & Personal Advisers is a Chartered Established in 1989 by Paul Cooper, a former accounting practice and a leader in the provision of Queensland President of CPA Australia, the firm accounting, advisory and financial services to Lake expanded the accounting business to include David EBIT Earnings Per Share Dividends Per Share Macquarie, Newcastle and the Hunter region generally. Reeves as a director in May 1997 to form Cooper EARNINGS BEFORE INTEREST, (CENTS) POST-LISTING (CENTS) POST-LISTING INVESTMENTS INCOME AND TAX ($M) Reeves. Since then three other directors, Peter Malanos, Evolution Business and Personal Advisers was born Nathan Manning and Sarah Smith have come on board 12 12 $35 from the merger of two long-standing Chartered as fellow directors. Accounting firms, Sefton & Loudon and O’Shea Glover. $30 10 10 The two firms, with combined experience of nearly Cooper Reeves is a professional Brisbane accounting 150 years, were renowned for providing high quality firm which has been providing business taxation, $25 8 8 accounting, taxation and business advisory services to consulting, accounting and financial planning services clients in a personal manner. The impetus behind the to local, national and international businesses. $20 creation of Evolution, was to develop services that will 6 6 In 2008, Cooper Reeves joined Count, having moved $15 be of value to clients across their business, professional from another dealer group. In addition to joining Count, and personal lifecycles. 4 4 the firm has also become part of Countplus. $10 The firm joined Count in 1993 enabling them to provide 2 2 a broad range of financial planning services to meet “Our strong Business Services background $5 their client’s growing needs. allows us to offer highly personalised $0 0 0 financial advice, providing clients with value 2009 2001 2002 2003 2004 2005 2006 2007 2008 2001 2002 2003 2004 2005 2006 2007 2008 2009 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 As a long-standing and highly successful Franchisee, this firm’s achievements have been recognised as a added solutions to meet their needs and recipient of the Award of Excellence every year since objectives”. Our aim is to grow our earnings per share by 20% pa by taking full We pay quarterly fully franked 2000. – Paul Cooper, Director, Cooper Reeves advantage of our scale and franchising structure. dividends and we aim to grow our dividends by an average of 10% pa. 6 7 “The Count group comprises of professionals with the highest standards, focusing on the needs of their clients. If you wish to belong to a group that sets itself apart from its competition and is truly focused on providing advice of the highest quality, I look forward to meeting with you”. – Colin Simkin Senior Executive, National Network Development Colin simkin RK DEVELOPMENT sENIOR EXECUTIVE, NATIONAL NETWO Important notice to Accounting Principals: One day you will need one of our exclusive accounting services... NEW accounting platform “CountGPS could be an invaluable tool for any accounting practice in Australia – it triggers everything you need to discuss in a meeting. We use it for the value-added services to clients as well as for the high end technical advice on corporate structuring for the business.” – Peter Beames, CA, Beames & Associates, Deakin ACT List your business on the ASX “Countplus is the ultimate growth strategy for accounting practices. On top of benefits and incentives for our team, and being able to list the business later, we retain day-to-day management of the practice and continue to look after our clients.” – Geoff Missen, CA, The MBA Partnership, Southport QLD Outsourced loan service for professionals “Just wanted to say thank you to the finconnect team, not only for the additional revenue stream that the service has opened up, but because of the flexibility it offers to my practice and for one more professional edge we have over competitors.” – Mark Dodds, CPA, Being Wealthywise, Samford QLD Funding for your business expansion “Count Loans has made it easy for us to realise our ongoing plans to expand the practice – including our most recent acquisition.” – George Haden, FCPA (FPS), Haden Partners Pty Ltd, Warrandyte VIC AFS Licence, total financial service solutions for accountants “We’re not restricted by relying on one service only – we offer a one-stop service for all financial needs. This is important for the financial health of our clients, but also the future well-being of the business” – Peter Haylock, CA, Coffey Hunt, Warrnambool VIC ...and there has never been a better time to join Count. For more information contact Colin Simkin on (02) 8272 0413 or email email@example.com ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited, ABN 19 001 974 625. AFS Licence Number 227232. Principal Member of the Financial Planning Association of Australia Limited. finconnect (australia) pty ltd is a wholly owned subsidiary of Count Financial Limited. WA Finance Brokers Licence #4292. Registered Finance Broker (ACT) #173 106 45. Head Office: Level 19, 1 Alfred St, Sydney 2000.