Count Financial Limited’s (COU) wholly owned subsidiary Countplus Pty Ltd has settled its sixteenth acquisition through the purchase of a 100% interest in Wearne & Co Pty Limited.
This long established accounting business is based in North Sydney, New South Wales and has three Principals whose average age is 47. The firm’s core business is the provision of accounting and business services advice the bulk of which is compliance related with an expertise and strong network of contacts in capital markets and mergers and acquisitions. The business has revenue of approximately $4.8 million per annum and a maintainable EBITAP (EBIT after Principal’s salaries) of $1.42 million.
Consideration is payable in two tranches with the first payment representing 49.9 % which settled yesterday via a cash payment of $1.57 million together with $1.04 million worth of Count shares. Second tranche consideration will be payable at or about the same time as other investees are fully acquired through the issue of Countplus shares in anticipation of the proposed listing of Countplus which is currently scheduled for December 2010.
A significant proportion of the work undertaken by the firm is advisory work, which has a stronger link to the general economic environment than tax and accounting compliance services. As this area has been subdued due to the GFC it is expected that further growth in this area is expected as the wider economy recovers over 2011 and 2012. In addition Wearne’s is proposing to implement a financial services advice offering to its client base for the first time which should also contribute to growth over the medium term.