Tranzact targets ownership in 10 NZ advice firms by mid 2008

Tranzact Financial Services, the ASX-listed entity majority-owned by Grosvenor Financial Services, would have equity stakes in at least 10 New Zealand financial planning firms by the end of the 2008 tax year, according to the group's annual report.

Tuesday, October 2nd 2007, 5:54AM

by David Chaplin

In its annual report released last Friday Tranzact said it would continue its 'partnership for growth' program in New Zealand that has seen it acquire minority ownership in five New Zealand firms already.

From April last year Tranzact has purchased shares in Cheltenham Services, Rutherford Rede Central (since merged with Cheltenham and two other Rutherford Rede businesses), Prime Planning Partnership, Skerrett Financial Planning and Van der Wilt Financial. Tranzact's shareholding in the various groups ranges from 20% to just over 34%.

Tranzact said it has "not disclosed the consideration paid for these interests as it believes it may be prejudicial to future negotiations".

In the annual accounts, which do not include the Prime, Skerrett or Van der Wilt acquisitions, Tranzact valued its New Zealand assets at just under A$710,000. The group recorded no revenue from its New Zealand operations to June 30 this year.

Tranzact said it would begin a similar acquisition strategy for Australian financial planning firms in mid-2008. Overall, Tranzact report a 243% jump in net profit of A$631,000 and projected a pre-tax profit of $2 million in the coming financial year. The firm also said it would pay a dividend in the 2008 tax year "subject to achieving growth targets and the specific circumstances at the time".

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