Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (June 2024)
33 slides from Prime Financial's investor presentation, Jun 11, 2024
Slide 1: Investor Presentation
Investor Presentation Prime Financial Group Ltd (Prime - ASX:PFG) Acquisition and Entitlement offer June 2024
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Disclaimer Group Limited (‘PFG’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and Summary
Slide 3: Executive Summary
Executive Summary • Prime Financial Group Ltd (“PFG”) is a market leading advice, capital and asset management group across four main verticals: Wealth Management, Capital & Corporate Finance, Accounting & Business Advisory, and Self-Managed Super Funds. Prime Financial Group Ltd (PFG) Overview • 25
Slide 4: Investment Highlights
Investment Highlights • Provides full-service Advisory, Capital, Asset Management services to Investors and Businesses Market-leading Advice, Capital and Asset • Trusted, sticky long-term client base with $1.2 billion of funds under management (FUM) Management services • Focused business model with
Slide 5: Company Overview
Company Overview Prime Financial Group Investor Presentation
Slide 6: About Us
About Us PFG is a market leading Advice, Capital & Asset Management Group. We provide Wealth Management, Capital & Corporate Finance, Accounting & Business Advisory and SMSF services, giving our clients an integrated solution to their financial needs. We believe in uncapped opportunities and are com
Slide 7: What We Do
What We Do PFG has four key service lines plus a centralised / shared services structure Prime Accounting & 35% of Group Accounting & Tax Compliance, Business Growth Advisory & Strategy, Outsourced CFO & Accounting Services plus Grants Revenue Business Advisory and R&D Tax Incentives (PABA) 55 Team
Slide 8: Building scale organically, and via acquisition to add capabilities and clients
Building scale organically, and via acquisition to add capabilities and clients Complete solutions for Business and Wealth Emerging Businesses: $0 - $100M revenue Wealth: Wholesale Clients / Investors Business Advisory Wealth M&A and Management Accounting Corporate Services Development Advice SMSF E
Slide 9: Our Journey
Our Journey PFG adds Property to the Wealth division PFG launches Prime PFG establishes PFG adds Debt Connected – PFG commences PFG establishes Capital and Capital Advisory wholesale investment as a Wealth Accounting & Corporate PFG acquires PFG adds Sports, platform Management Business Advisory Adv
Slide 10: History of Strong Revenue Growth
History of Strong Revenue Growth A$M 35 A$34M 33 70%+ of total revenue is generated from existing clients 31 on a recurring basis 29 27 25 23 A$22M 21 19 17 15 Revenue growth has accelerated over the past 3 years FY19 FY20 FY21 FY22 FY23 vs the prior periods A$M 14 +14% Vs FY22 12 +15% Vs FY22 10 +4
Slide 11: Prime's 5-year Performance
Prime’s 5-year Performance $M 10 Cents Per Share 2.50 CAGR** 9 8 2.00 20% Underlying EBITDA* 7 6 1.50 5 36% Reported Profit 4 1.00 3 30% Earnings per Share 2 0.50 1 - FY19 FY20 FY21 FY22 FY23 - 39% Dividend per Share Underlying EBITDA Reported Profit Basic Earnings per Share Dividend per Share *Excl
Slide 12: Strategy for Growth
Strategy for Growth Our goal is to double revenue from $26M in FY22 to • Organic growth in existing service lines and new services $50M in FY25 • Recruiting people with an existing revenue and client base And then double revenue again to $100M within 3-5 • Cross-delivery of additional services to ex
Slide 13: Executing on Acquisition Strategy – PFG looks for a 1 + 1 = 3 opportunity
Executing on Acquisition Strategy – PFG looks for a 1 + 1 = 3 opportunity PFG is focused on pursuing further EPS-accretive acquisitions to increase the client base it can offer products and services and scaling those currently offered by the acquisition Recent Acquisitions Current Acquisition Altor
Slide 14: A real-life case study highlighting the cross-sell strategy
A real-life case study highlighting the cross-sell strategy Revenue 2018 ABC Corp engaged PFG’s Accounting & Business Advisory division $6k compliance engagement in 2018 grew to circa $100k p.a. and $300k+ across the client’s broader network $6k growing 2018 “Our work with ABC provides - 2021 to $10
Slide 15: Our Commitment to Ownership
Our Commitment to Ownership Our people are our biggest asset • Currently 45% of our company is owned by the staff and associates 45% • We encourage our staff to have an ‘ownership’ mentality and to work collaboratively, enabling them to help co-create the firm of the future Staff & Associates Shareh
Slide 16: Outlook - Continuing to Deliver Results
Outlook - Continuing to Deliver Results 1 2 3 4 Strong Organic Delivering Scale Driving Growth Growth Accretive Efficiencies to in Revenue, Acquisitions Drive Earnings Earnings & Dividends • Organic growth to be • Integrating Altor and • Investment in team On track to deliver FY24 driven across core
Slide 17: Offer Overview
Offer Overview Prime Financial Group Investor Presentation
Slide 18: Equity Raising Summary
Equity Raising Summary • Fully underwritten non-renounceable entitlement offer to raise approximately $3.3 million at an issue price of $0.20 per share (“Entitlement Offer” or “Equity Raising”) • The Entitlement Offer will result in approximately 16,500,000 new shares being issued which will equate
Slide 19: Indicative Pro-Forma Balance Sheet
Indicative Pro-Forma Balance Sheet Mar 24 Proforma $m $m Basis of Preparation Cash and cash equivalents 0.8 2.6 Trade and other receivables 4.9 5.0 Financial assets 0.3 0.3 Proforma Balance Sheet shows the PFG Balance Sheet at 31 Contract assets and other current assets Total Current Assets 9.5 15.4
Slide 20: Indicative Timetable and Sources & Uses of Funds
Indicative Timetable and Sources & Uses of Funds Event Date Source of funds (A$m) ASX announcement of Entitlement Offer, Appendix 3B lodged 11 June 2024 Entitlement Offer Proceeds 3.3 ‘Ex’ date 13 June 2024 Total 3.3 Record Date for determining Entitlements 14 June 2024 Offer Opening Date 18 June 20
Slide 21: Risks
Risks Prime Financial Group Investor Presentation
Slide 22: Key Risks
Key Risks Offer specific risks (risk specific to the Entitlement Offer and/or Acquisition) Integration risk – There is a risk that the integration of the Acquisition may be more complex than currently anticipated, involve unexpected challenges or issues, or may prove unsuccessful. The successful int
Slide 23: Key Risks
Key Risks PFG specific risks (risks specific to PFG’s business and the industry which it operates) (cont.) Competition - There are many other companies that offer products and services that compete with PFG’s Service Lines in Australia. The market is intensely competitive and continues to evolve in
Slide 24: Summary of Underwriting Agreement
Summary of Underwriting Agreement PFG has agreed to pay the Underwriter the following fees in consideration for acting as Underwriter to the Offer: a) an underwriting fee of 4.00% of the gross amount raised at the time those amounts are received; Fees b) a management fee of 2.00% of the gross amount
Slide 25: Summary of Underwriting Agreement
Summary of Underwriting Agreement The Underwriter, without cost or liability to itself, may by written notice to PFG, terminate its obligations under the Underwriting Agreement upon or at any time prior to completion of the Offer if: a) (EPM Acquisition Agreement): the EPM Acquisition Agreement is b
Slide 26: Summary of Underwriting Agreement
Summary of Underwriting Agreement m) (regulatory action): ASIC or another governmental body takes regulatory action or threatens to undertake regulatory action in connection with the Offer or against PFG or a director or employee of PFG; n) * (new circumstances): an adverse new circumstance arises t
Slide 27: Summary of Underwriting Agreement
Summary of Underwriting Agreement x) * (hostilities) hostilities not previously existing commence or a major escalation in existing hostilities occurs involving any one or more of Australia, New Zealand, Canada, the United States of America, United Kingdom, Japan, any member state of the European Un
Slide 28: Summary of Underwriting Agreement
Summary of Underwriting Agreement Subject to limited exceptions, PFG will indemnify and hold harmless the Underwriter and its officers, employees, agents and advisers joint and severally and Indemnity hold them harmless from and against any costs, claims, damages, liabilities or other losses or expe
Slide 29: Acquisition Overview
Acquisition Overview Prime Financial Group Investor Presentation
Slide 30: Acquisition Summary
Acquisition Summary • The business conducted by Remuneration Strategies Pty Ltd (RS). RS advises clients in relation to remuneration strategies and structuring employee incentive plans Assets being • 100% of the issued capital of Equity Plan Management Pty Ltd (EPM). EPM implements and administers e
Slide 31: Acquisition Summary
Acquisition Summary While the acquisition of EPM is likely to represent a significant change to the scale of PFG's activities in the context of Listing Rule 11.1, ASX has confirmed that PFG is not required to obtain shareholder approval for the transaction. PFG considers that the following reference
Slide 32: Execution of an NBIO for Wealth Business Acquisition
Execution of an NBIO for Wealth Business Acquisition • PFG has executed a confidential non-binding indicative offer (NBIO) for the acquisition of a Melbourne-based company that provides investment research, portfolio and asset/funds management services. The potential acquisition will complement Prim
Slide 33: CONTACT
CONTACT Simon Madder Ben Priestley Eric Kuret CEO, Managing Director & Chairman Head of Finance & Investor Relations Automic Markets Prime Financial Group Ltd Prime Financial Group Ltd T (03) 9827 6999 T (03) 9827 6999 T (61) 417 311 335 E simonm@primefinancial.com.au E benp@primefinancial.com.au E
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