Count Ltd

ASX:CUP

Strong growth: Count reported statutory revenue of $82.8 million, up 12%, while underlying EBITA rose 19% to $16.6 million and underlying NPAT attributable increased 45% to $7.2 million.

Wealth momentum: Funds under management reached $5.3 billion, up 49%, while funds under advice rose 11% to $40.2 billion. Management said CARE adoption remains well below its potential, leaving room for further growth.

Margin expansion: Underlying EBITA margin improved to 20% as revenue grew faster than costs, supported by scale, productivity initiatives, acquisitions and increasing recurring wealth revenue.

M&A pipeline: Count completed 9 transactions in the half and said its pipeline remains strong, with 7 or 8 term sheets currently out and continued focus on accretive financial-planning acquisitions.

Cash and dividends: EBITDA-to-operating-cash conversion was around 90%, debt fell during the half and the interim dividend increased 14% to $0.02 per share, fully franked.

Growth priorities: Management plans to expand employed advisers, double emerging-adviser program throughput, increase investment-solutions adoption and grow FUM to $10 billion within 5 years.

Technology: Robotics and AI are already improving productivity and compliance, but management also highlighted the need to adapt specialist tax and training businesses to potential AI disruption.