Excellent result imo. The restructure costs are also less than I was expecting. 26% increase in underlying EBITDA and 27% increase in underlying NPAT to $2.36m (EPS 7.62c) after excluding the after tax effect of the restructure charge. Can't complain about that.
In addition to the point Imran made about new planners, I note they stated:
"The Board is supportive of growth by acquisition in the current environment and we have progressed opportunities for acquisition of financial planning practices which we anticipate could be completed before the end of the financial year. "
My one complaint is they did not separate out amortisation of client portfolio acquisition costs as they did in the FY14 result. This is a growing non-cash accounting charge that all consolidators (IFL etc) add back. This would have amounted to around $0.2m after tax.
Perhaps another point the market is not picking up on. In July 2012 they had a 3 year transition arrangement where they would be reimbursed 75% of unrecovered operational expenses incurred by the Superannuation Service. Thereafter it will recover 100% (from July 2015). For H1 15 this was an amount of $1.67m. If they were collecting 100% it would have added around $0.39m to NPAT. So for FY16 there is potentially around a $0.8m boost t0 NPAT coming up assuming no other growth. At least that is how I'm reading it.
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