A boutique firm offering maintainable fees of $950K – $1 Mill.
This well established firm is located conveniently around 5 kms north of Perth’s CBD and provides strategic and mandatory compliance, as well as business advisory services, to SMEs. The firm is well positioned to continue increasing its strategic service fee focus with its recent digital marketing campaign contributing to growth, although referrals from satisfied clients are still the main source of growth.
Tax lodgements for the 2023 tax year numbered 120 in total, 30 of which were ‘I’ returns equating to 6% of revenue, 4 partnership returns, 33 trust returns equating to 18% of fees, 23 company returns or 19% of revenue, and 30 SMSF returns equating to 12% of fees. Additionally, there are 10 quarterly BAS and 156 corporate secretarial, as well as providing management advice to 18 groups which produced 37% of fees, and 8 bookkeeping engagements. All in all, the average billing for the period was just under $3,335.
The fee base consists of only 109 client groups with an average client size of $9.6K, which is exceptional for a firm of this size. Some 52% of revenue originates from fees above $20K per annum, with almost 90% of fees associated with annual fees of $5K and above. Clients range in age from their 40s to mid 60s, most of whom have been serviced by the firm for over 10 years, if not longer. The businesses are all SMEs from a variety of industries.
The top 20 client groups contributed some 59% of fees for FY 2023 with the two largest clients equating to 6.5% and 5.4% respectively. These clients are generally located in and around Perth and its suburbs. Three quarters have been clients for 10 plus years. These key contacts range in age from their early 40s to 70, three quarters of whom are less than 60 years of age.
The firm utilises Office 365 Business, FYI, Xero, XPM, Business Fitness, ATO mate, Practice Protect, Spotlight, BGL CAS and SF360.
Whilst the key person in the firm wishes to retire, they are available for a transition period of a year or so based on 3 days per week, with other key personnel open to remaining longer term. The current lease has 12 months remaining upon which time the firm could potentially remain at these premises or relocate to the CBD or other adjoining suburbs.
E-mail broking@robknightsbroking.com.au or call (02) 9233 4333 to request a confidentiality agreement.
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