CUP - Count Limited

I did run my FA ruler over it at one stage, there is some potential coming out of the Banking RC and its not a bad business. I never developed enough conviction to take a position though.

On May 9th, 2023, Countplus Limited changed its name to Count Limited.

Chart update

COUNT EXPANDS SERVICE OFFERING WITH ACQUISITION OF SOLUTIONS CENTRIC

Count Limited (ASX:CUP) (Count) has announced the acquisition of Solutions Centric, an Australian company that provides offshore accounting, tax and SMSF services out of India. Founded in 2016, Solutions Centric has a reputation for delivering outstanding service and providing tailored and highly technical support to accounting businesses.

The acquisition continues Count’s strategy of expanding its Services segment to complement its existing group services that support accounting and financial planning businesses (IT and offshore capabilities), along with actuarial certificates, SMSF and tax training/education.
Hugh Humphrey, Chief Executive Officer at Count, said the acquisition supported Count’s strategic focus on expanding its Services segment. “This acquisition continues Count’s recent strategic growth momentum with the addition of a quality and highly technical outsourced services provider.
We know that accounting firms are still experiencing resourcing challenges, so the need for reliable external providers with strong technical knowledge has never been more important in servicing clients and supporting practice efficiency.” Krish Sritharan, Managing Director and CEO at Solutions Centric, said he was excited about leading the next chapter of the business and the benefits that come from joining the Count community.
“This strategic partnership with Count allows for the next stage of evolution and development for Solutions Centric within the professional services industry.
The existing synergies between Count and the management team at Solutions Centric will provide a strong platform for growth and support to the Accounting and Financial services industry in Australia.
” Count will acquire 51% of the business based on an enterprise valuation of $4.1m.
Count will pay an upfront consideration of $1.6m and the remainder over 12 and 24 months
respectively, subject to Solutions Centric achieving certain EBITA targets in each 12-month period.

Further earn-outs may be payable if Solutions Centric achieves additional growth targets.
The acquisition is expected to complete before 31 March 2024.

This announcement has been authorised for release to the ASX by the CEO of Count Limited.

i hold CUP

nice to see the exposure to India , but still worry about over-expansion

divs4ever said:

COUNT EXPANDS SERVICE OFFERING WITH ACQUISITION OF SOLUTIONS CENTRIC

nice to see the exposure to India , but still worry about over-expansion

Click to expand...

it's not exposure, it's acquiring a cheap back office, rather than organically building one.

easy to leak cash with too many partnerships and JVs

i realize many existing businesses are stretched for cash , but you still have to be careful how many opportunities you gobble up

COUNT EXPANDS GOLD COAST CLIENT BASE

Count Limited (Count) (ASX:CUP) equity firm Count GC Pty Ltd (Count Gold Coast), has today announced the purchase of the accounting fees of Jonathan Grant Accountants (JGA).
A Burleigh Heads-based accounting firm with 20 years of history providing financial services to communities in south-east Queensland, JGA has recurring revenues of circa $1.3M.
Consideration for the transaction is $1.4M, to be paid in a combination of cash and shares.
Post the acquisition Count Limited will hold 66.51% of the expanded Gold Coast business.
JGA’s clients will experience service continuity with owners Grant Robinette and Jonathan Hanaghan set to join Count Gold Coast as Principals and shareholders based in the business’ Coolangatta office.
Count Chief Executive Officer, Hugh Humphrey, said the acquisition would deliver mutual benefits for the Count Gold Coast team and the community.
“Count Gold Coast and JGA are two leading professional service firms, each with more than 20 years’ experience in servicing clients on the Gold Coast.
The addition of Jonathan, Grant and the JGA team to our existing Coolangatta team, positions Count Gold Coast as the leading professional services firm in the southern QLD/northern NSW market.”

This announcement has been authorised for release to the ASX by the CEO of Count Limited.

i hold CUP

COUNT UPGRADES SYNERGY BENEFITS

Count Limited (Count) (ASX:CUP) has today updated the market on the cost synergy benefits expected to be achieved following the integration of Diverger Limited (Diverger).

Annualised expected cost savings have been upgraded to approximately $4m, to be achieved in FY25.
This represents a considerable increase from the initial $3m expectation announced at the time of the transaction.
Hugh Humphrey, Count Chief Executive Officer, said the upgrade further evidenced the value of this strategic transaction, and was made possible by the way in which Count has approached integration.
“Following this acquisition, Count cemented its position as one of Australia’s leading integrated accounting and wealth services providers with over 500 accountants and 550 financial advisers in our national community.
The synergies we’ve identified so far will ensure we can continue to operate more efficiently, delivering better outcomes for our shareholders, member firms and clients.”
Mr Humphrey praised the team from the new, combined Count business in achieving this outcome. “Our people have moved quickly and worked hard to integrate the businesses and realise tangible benefits.
I’m grateful for the hard work of the team to successfully complete the transaction, integrate the businesses smoothly and make doing business easier for all our business partners.”

This announcement has been authorised for release to the ASX by the Board of Count Limited.

i hold CUP

COUNT EXPANDS MELBOURNE CLIENT BASE

Count Limited (Count) (ASX:CUP) equity partner firm O’Brien Accountants & Advisors (O’Brien) has announced the purchase of the accounting client book of Kaias Phillips, a Melbourne accounting firm with more than 45 years’ experience servicing clients from a broad range of industries.

Consideration for the transaction is $2.1 million.
The business has recurring accounting revenues of $1.75 million, and Count will retain a 40% shareholding in the combined entity following completion of the transaction.

To ensure a seamless client transition, two members of the existing Kaias Phillips team, Andrew Cust and Helena Golby, will join O’Brien as employee shareholders.
The remaining two vendors, Van Kaias and Bill Scopas, will take up consulting roles to support integration activities.
Mark O’Brien, Managing Principal at O’Brien, said the acquisition was a boost for their team and the community more broadly.
"Both O’Brien and Kaias Phillips have long, proud histories dating back to the 1970s and a reputation for delivering quality services to our loyal clients.
We are excited to be adding experience and expertise to our team that will ultimately make us a better business.”

This announcement has been authorised for release to the ASX by the CEO of Count Limited.

i hold CUP

COUNT CONTINUES VICTORIAN EXPANSION

Count Limited (Count) (ASX:CUP) announces that equity partner firm Kidmans Partners(Kidmans) has acquired the accounting and financial planning business of Zanacorp.

Zanacorp is an integrated accounting and financial planning firm based in Elsternwick,Victoria.
Consideration is $2.1 million with 70% paid upon completion and the remainder deferred over a two-year period.

The business is expected to be earnings accretive on completion.

Joseph Zanca, founder, and Managing Director at Zanacorp, will join Kidmans as a Principal and looks forward to continuing to provide professional services to clients.
Ross Hedrick, Managing Director at Kidmans, said the acquisition was a good outcome for their business and clients.
"Zanacorp has been delivering quality accounting and advisory services since 1989 and has a strong reputation in the community.

We are excited to bring Joe and his clients into Kidmans.
"Mr Zanca said he was pleased to be joining the Count professional community."

Kidmans is an outstanding business with a client-first approach that aligns closely with our values.

This is an exciting new chapter for our business with Kidmans and Count and will expand the skillset offered to our clients with the support of one of Australia's leading financial services companies."As a result of this transaction, Kidmans will be present as a scale accounting and financial planning business with 58 employees and more than $10.5 million in annual revenues.

This announcement has been authorised for release to the ASX by the CEO of Count Limited.

i hold CUP