CountPlus half impaired by 2021 Wealth Axis acquisition

Mike Taylor

Managing Editor/Publisher, Financial Newswire

27 February 2023

Significant publicly-listed accounting and financial planning group, CountPlus has posted a disappointing half-year loss which it is blaming on a once-off impairment and the general challenges facing the accounting sector.

The major part of the loss was attributable to the company’s decision to discontinue the operations of Wealth Axis, a paraplanning, technology and administration support services company, in which CountPlus invested to acquire 51% in 2021.

The company, which is the parent of Count Financial, announced to the Australian Securities Exchange (ASX) today that the loss for the Group after providing for income tax and non-controlling interests amounted to $126,000.

It said the loss had arisen from a once-off impairment charge of Goodwill and Acquired Client Relationships of $1,424,000 and the write-off of deferred consideration receivable of $622,000 which were no longer considered recoverable.

As well it said that, in line with the rest of the industry, the company had been impacted within the accounting segment by resourcing challenges that had had an unfavourable impact on the cost base and staff production levels.

Notwithstanding the loss, the directors declared an interim dividend of 1.50 cents per share, fully franked.