Fiducian Portfolio Limited has reported sustained profitability for the period June-December 2011 which is expected to continue in 2012 owing to acquisition moves last year.
The company reported a consolidated after tax profit for the half-year, of $1,144,000. Operating profit after tax for the six month period ending 30 June 2011 was $2,195,000.
Growth initiatives such as acquisitions, new products and system enhancement have caused costs to rise in the short term but are expected to support cost rationalisation and improved competitive advantage in the medium to long term, the company said.
"So we expect that these acquisitions will start adding to the bottom line, particularly the accounting business that we've now starting acquiring," Fiducian managing director Indy Singh told InvestorDaily.
"It should be a great revenue protector and shock absorber if markets are volatile because it is a steady income that will keep coming through."
Fiducian is considering system enhancements and improvements in the immediate future to give further cost savings and also continues to look for further acquisitions of financial planning businesses.
"We're willing to talk to people, we're willing to look for big client bases as well," Singh said.
"We intend to expand the accounting side of the business in Sydney and in Melbourne and we do believe the market seems to be bottoming. So if it starts to recover then that will add to our profitability as well."
Accountancy Resourcing through Fiducian Business Services is starting to build steady volumes through its accountancy resourcing division and has proven its potential by increasing the profitability of accounting practices that use its services.
"As a consequence, our first accounting practice was acquired in May 2011. It has assimilated exceptionally well and is delivering expected revenues through organic growth supported by our resourcing operations. This is likely to become a fast growing area of our business," Singh said.
