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Australian accounting and financial services group to float
MEDIA RELEASE
19 April 2000
Australian financial services and accounting group to float
Financial services and accounting group Harts Australasia Limited announced today it is seeking to raise $30 million of new equity via an ASX listing in late May, with $21 million of funds raised earmarked for a strategic program of acquisitions.
Harts takes this step after two decades of building an extensive network of more than 50 offices in Australia and New Zealand through strategic acquisitions and joint ventures.
Most recently, in January 2000, Harts acquired one of New Zealands largest financial planning and fund management groups, Reeves Moses Hudig, which has more than NZ$500 million under management or advice.
Other recent key acquisitions include a leading Sydney-based property marketing and development company with $30 million annualised sales, as well as Australias largest mobile tax service, Mobile Accounting Professionals (Australia) Pty Ltd.
Managing Director of the Harts Group, Mr Ric Hayter, said Harts was now perfectly poised to take on a much greater role in the accounting and financial services industry, just as the industry as a whole faced significant rationalisation.
"A clear gap in the market has emerged as larger accountancy firms continue to target and customise their services to suit larger companies," he said.
"At the same time changes to taxation and superannuation regulations are putting excessive pressure on smaller accounting practices to constantly update their knowledge and service capabilities without increasing their fees.
"Even without that extra pressure, the traditional business structure of these smaller firms has restricted their ability to provide other higher margin financial services to the Small to Medium Enterprise market.
"This presents a valuable opportunity for a diverse financial services group like Harts to further expand its network of smaller accounting firms and provide them with the expertise and support systems they need.
"We have been approached by many smaller firms in Australia and New Zealand who have expressed interest in becoming part of a larger group which can add additional product and service capability to their practice."
Harts has appointed BNP Equities (Australia) Limited as underwriter and issue manager to the Harts Australasia Limited public offer.
Harts was founded in Brisbane in 1979 as a sole practitioner accounting practice specialising in the small family business sector. It has since grown to have more than 300 staff and over 85,000 annual fee-paying clients.
While the foundation of Harts business remains accounting, its diversification allows it to offer clients packaged financial solutions including funds management, insurance, property services, mortgage securitisation and leasing.
Mr Hayter said the company was on target to achieve a forecast net profit after tax of $6.8 million for the current financial year, on forecast revenue of $47.2 million. Its forecast net profit after tax for its first full year as a listed company, 2000/2001, is $12.4 million based on revenue of $74.4 million, resulting in a fully franked dividend of 7.5 cents per share.
The offer price of $1.00 per ordinary share represents a price earnings ratio of 8.0 times 2001 earnings. The issue opened on April 18 and is scheduled to close on 16 May.
Total shares on issue after the public offer will be 100 million with existing shareholders continuing to hold 70 million ordinary shares.
Former Australian federal minister the Rt. Hon Ian Sinclair has been appointed Chairman of the board, to be joined by John Sweetman a former director of GIO Life Limited, and John Thomas who was previously joint chief executive of Australian Eagle Insurance Life Limited and an executive director of Sovereign Assurance Company Limited.
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For further information please contact:
Ric Hayter
Managing Director
Harts
Ph: 61 7 3229 7761
or
Deidre Stark
Bayly Willey Holt Public Relations
Ph: 61 7 3368 2355
Mobile 61 402 123 847
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