WHK Group will maintain its strategic direction and take advantage of acquisition activities under its new managing director, the company's outgoing leader has said.
In a statement to the Australian Securities Exchange, retiring managing director Kevin White said under John Lombard the listed financial services firm would maintain its focus on organic growth and would undertake activities to benefit company shareholders.
"Mr Lombard intends to maintain the group's focus on organic growth in acknowledgement of its fundamental importance in achieving a market re-rating and stronger share price performance going forward," White said.
"The intention is to also take advantage of attractive new business acquisitions capable of creating value for WHK and its shareholders."
In line with the company's direction to gain scale, the group has undertaken a number of internal mergers within its member firms.
"These internal mergers will reduce the number of member firms from 20 to 18 at 1 July 2011 and, like others before them, these mergers are expected to provide benefits of synergy and scale, as well as resulting in strengthened service lines," White said.
He said heading into the second half of the year, WHK's profit estimate mirrored the group's first half due to a number of difficult business conditions in Australia and New Zealand.
White pinpointed the natural disasters in New Zealand as one of the key impacts on WHK Group, in particular its New Zealand operation.
"Given the impact of the natural disasters experienced in certain parts of Australia over the last six months, especially on clients and their ability to trade, a flat revenue result across the Australian operations is considered by the directors to be reasonable in the circumstances," he said.
"Second half performance has also been impacted by the continuing depressed trading conditions in New Zealand, where operations account for approximately 14 per cent of WHK's annual turnover."
WHK directors said the operating result for the 2011 financial year was estimated to be in the range of $41 million to $42 million, represented by earnings before interest, tax and amortisation of intangible assets.
Lombard joined WHK on 6 June following White's retirement announcement.
