Countplus Ltd. :CUP-AU: Earnings Analysis: For the six months ended June 30, 2017 : September 1, 2017

Countplus Ltd. reports financial results for the half-year ended June 30, 2017.

We analyze the earnings along side the following peers of Countplus Ltd. – FSA Group Limited and Platinum Asset Management Ltd (FSA-AU and PTM-AU) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of AUD 58.67 million, Net Earnings of AUD -1.60 million.
  • Gross margins narrowed from 70.40% to 69.51% compared to the same period last year, operating (EBITDA) margins now 7.86% from 25.03%.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2017-06-30 2016-12-31 2016-06-30 2015-12-31 2015-06-30
Relevant Numbers (Semi-Annual)
Revenues 58.67 62.49 59.5 62.6 58.71
Revenue Growth (YOY) -1.38 -0.17 1.33 -1.12 1.26
Earnings -1.6 1.49 7.4 5.99 3.88
Earnings Growth (YOY) -121.62 -75.07 90.77 -0.98 -11.78
Net Margin -2.73 2.39 12.44 9.57 6.61
EPS -0.01 0.01 0.06 0.05 0.03
Return on Equity -2.71 2.43 12.06 10.59 7.25
Return on Assets -2.98 2.5 12.56 10.84 7.33

Access our Ratings and Scores for Countplus Ltd.

Market Share Versus Profits

Revenues History
Earnings History

CUP-AU‘s change in revenue this period compared to the same period last year of -1.38% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that CUP-AU is holding onto its market share. Also, for comparison purposes, revenues changed by -6.11% and earnings by -207.10% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s year-on-year decline in earnings was influenced by a weakening in gross margins from 70.40% to 69.51%, as well as issues with cost controls. As a result, operating margins (EBITDA margins) went from 25.03% to 7.86% in this time frame. For comparison, gross margins were 70.17% and EBITDA margins were 7.91% in the previous period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Margins

Despite a decline in operating (EBIT) margins as well as a decline in pretax margins, the company’s earnings rose.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Countplus Ltd.

Company Profile

Countplus Ltd. operates as a holding company with interest in providing accounting and financial services. It provides a range of solutions such as auditing, and assurance, business and corporate advisory, corporate recovery and insolvency, financial planning, human resource, as well as lending and taxation. The company was founded in 2007 and is headquartered in Sydney, Australia.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of CUP-AU.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any of our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.