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Prime Financial Group chief executive Simon Madder says the firm is set for a year of investment in accounting firms with a number of offers already on the table.
Speaking to AccountantsDaily after announcing the group’s 2014 financial results, Mr Madder said he was happy with the group’s position despite a drop of one per cent in EBIT. The 2014 financial year was spent positioning the business for future growth, he said.
“The financial results in terms of EBIT were actually down one per cent but I think the main things that we've been focusing on really for the last 12 months has been about setting the business up for growth with respect to new accounting firm partnerships and equity ownership in accounting firms,” he said.
“I think we are probably a leaner business now and much more focused on executing on that growth opportunity,” Mr Madder added.
As previously reported by AccountantsDaily, Prime Financial took a staggered 20 per cent stake in Victorian accounting firm the MPR Group earlier this year and Mr Madder said four similar offers have now been made to other accounting firms.
“We are at the offer stage with a number of firms as the pipeline of activity has grown. We have some offers out there in the marketplace for some great firms that meet our profile and growth objectives.”
“I would also expect there will be further offers that will be made,” Mr Madder added.
According to a statement released by Prime, the significant stock market improvement had a positive impact on Prime’s wealth management recurring revenue, however transactional new business revenue fell.
Accounting and self-managed superannuation services revenue picked up eight per cent for the year however, NPAT fell six per cent from 2012/2013 to $2.63 million.
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