Prime Financial Group Limited · ASX:PFG
Prime Financial — H1 FY2020 Earnings Presentation
20 slides from Prime Financial's earnings presentation, Feb 14, 2020
Slide 1: Half Year 2020 (H1 FY20) Results Presentation
For personal use only Prime Financial Group Ltd (ASX: PFG) Half Year 2020 (‘H1 FY20’) Results Presentation 14 February 2020
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer For personal use only This investor presentation (Presentation) has been prepared by Prime Financial Group Limited Disclaimer (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the informati
Slide 3: Key Message
For personal use only Key Message Continuing momentum and positive growth outlook as ‘One Connected’ and integrated firm 3
Slide 4: H1 FY20 Highlights
H1 FY20 Highlights For personal use only H1 FY20 vs H1 FY19: Key Takeaways Organic revenue growth 6% (contracts with customers) Focused Organic Growth Third successive period of organic revenue growth Integration Accelerating Operating expenses flat Leveraging Existing Services Non-recurring expense
Slide 5: Key Financial Metrics
Key Financial Metrics H1 FY20* vs H1 FY19 For personal use only Prime – Prime’s key profitability measure is underlying Prime – Group Members/Shareholders EBITDA for members/shareholders H1 FY20 Financial Highlights* H1 H1 Underlying EBITDA for members/shareholders H1 FY20 H1 FY19 Change Change FY20
Slide 6: Revenue: Contracts with Customers
Revenue Contracts with Customers For personal use only Analysis of Revenue Growth – H1 FY20 vs H1 FY19 Revenue How are we growing? H1 FY20 H1 FY19 H1 FY20 vs H1 FY19 $m $m Additional group services to existing clients Wealth Management & SMSF 4.9 5.0 (3%) Accounting, Business Advisory & Capital 6.2
Slide 7: EBITDA & NPAT Reconciliation
EBITDA & NPAT Attributable to Members/Shareholders Reconciliation For personal use only $000 AUD H1 FY20 H1 FY19 Reported net profit after tax from operations (Group) 943 1,286 Add: Tax expense 325 325 Add: Interest expense/(income) 280 281 EBIT (Group) * 1,548 1,891 Add: Depreciation 568 129 Add: A
Slide 8: Balance Sheet, Cash Flow & Net Debt
Balance Sheet, Cash Flow & Net Debt For personal use only Balance Sheet Group At 31 Dec 2019 $m At 30 June 2019 $m Key Takeaways Cash 0.1 0.2 • Refinanced debt facility for a 5.5 year period Total assets 59.1 55.5 on favourable terms Borrowings (10.2) (9.6) • Operating cash inflow $1.4 million Total
Slide 9: Dividends
Dividends For personal use only • Dividends to be paid from operating cashflow Key dates for dividend • Target dividend payout ratio of 40 – 60% of reported and maintainable and DRP earnings Record Date 3 April 2020 • H1 FY20 interim dividend of 0.20 cents per share (‘cps’) (fully franked) vs interi
Slide 10: Outlook for Members/Shareholders – FY20
Outlook for Members/Shareholders – FY20 For personal use only • Revenue from contracts with customers 5% + (vs FY19) • Reported EBITDA 30% + (vs FY19) Continued organic • Underlying EBITDA 5% + (vs FY19) earnings growth • Group operating cashflow + $1.5 million (vs FY19) • FY20 Interim dividend matc
Slide 11: Outlook for Members/Shareholders – FY20
Outlook for Members/Shareholders – FY20 For personal use only • Reduce Group net debt by up to 5% (vs FY19) • Target net debt to underlying EBITDA ratio of Reduce debt 2.0 - 2.5 times (currently 2.1 times) • Empowering our clients to achieve their aspirations through additional Prime Accelerate serv
Slide 12: Contact
Contact Simon Madder Managing Director/CEO For personal use only Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au W www.primefinancial.com.au Rory McLaughlin Group Financial Controller Prime Financial Group Ltd T (03) 9827 6999 E rorym@primefinancial.com.au W www.primefinanc
Slide 13: Appendices
For personal use only Appendices
Slide 14: Who We Are
Who We Are For personal use only Service Operations Integrated Accounting & Business Advisory, 85+ team members primarily across Wealth Management, SMSF and Capital Melbourne, Sydney and Brisbane Services with over $1 billion of client funds under management (FUM) Continued focus on growing three co
Slide 15: Capital Structure & Comparisons
Capital Structure & Comparisons Top 20 Shareholders For personal use only Prime’s Capital Structure Shares on issue (includes treasury shares) at 31 December 2019 191.8m 67% Market Capitalisation at 7.6 cents at closing on 10 February 2020 * $14.7m Net debt at 31 December 2019 $10.1m Investment Info
Slide 16: Wealth Management & Protection plus SMSF
Wealth Management & Protection plus SMSF – 44% Segment Services & Revenue • • Financial Planning & Strategic Advice Retirement Planning For personal use only • Superannuation Advice • Investment Advice • Life Insurance Prime operates a direct client advice model under • SMSF Establishment, Advice, t
Slide 17: Typical Clients
Typical Clients For personal use only Accounting & Business Self-Managed Super Funds Advisory • Personalised SMSF administration • Start-ups, Scale-ups and • Provide Financial Advisers with established businesses with $1 personalised service and specialist million - $30 million revenue support and o
Slide 18: Strategic Plan
Strategic Plan AREAS & OBJECTIVES FY20 KEY PRIORITIES For personal use only Customer Organic Growth Provide clients with advice, growth • Integrate Prime’s Accounting & Business Advisory and ‘One Connected’ professional Wealth Management client bases services firm opportunities and wealth management
Slide 19: Core Hub Strategy
Core Hub Strategy Melbourne, Sydney & Brisbane For personal use only Core Hub – Brisbane Prime is ‘One Connected’ professional • Accounting & Business Advisory • Wealth Management & Protection services firm, operating across four key • SMSF areas in Accounting & Business • Capital & Corporate Adviso
Slide 20: Board and Management
Simon Madder Experienced Chief Executive Officer & Managing Director For personal use only • Co-founder, Managing Director & CEO of Prime Financial Group Ltd (Prime) Board since 1998 • 22 years’ experience in Wealth Management & Accounting Services across Operations, Strategy & Acquisitions • Share
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