Prime Financial Group Limited · ASX:PFG
Prime Financial — H1 FY2014 Earnings Presentation
19 slides from Prime Financial's earnings presentation, Feb 26, 2014
Slide 1: Half Year Results Presentation
Half Year Results Presentation For personal use only 26 February 2014 Helping Clients Build Wealth and Protect Assets
Slide 2: Prime Financial Group Ltd – Positioning & Opportunity
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • What is the Clients opportunity for • Estimated that only 20% - 40% of Australians receive Prime? Financial Advice. Superannuation asset pools continue to grow and Australians are increasingly becoming more engaged in thei
Slide 3: Positioning & Opportunity: How does Prime grow?
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • How does • More consistently implement Prime’s Wealth Management Prime grow? Client Engagement Model with Accounting Firms (More New Leads & New Client Appointments) • Increase Funds Under Management (FUM) • Deliver more s
Slide 4: Positioning & Opportunity: Why are we successful?
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • Why are we • Key roadmap to Growth (Organic & Acquisition) successful and • Clear focus on what our ideal Clients and Partners look why will we like and, increasingly how to access them become more successful? • Access to
Slide 5: Structure Chart
Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting and SMSF Services Up to 50% Equity $1B+ FUM and over 4,000 clients 30+ Wealth Management Direct Entities jointly owned 10 Accounting/SMSF (100% Equity) with Accounting Firms Firms (50% Equity) Access to 40,0
Slide 6: 1H2014 Results Summary
1H2014 Results Summary For personal use only 1H2014 • EBIT UP 10% to $1.84M compared to 1H2013; • NPAT UP 14% to $1.16M compared to 1H2013; • EPS UP 6% to 0.67 CPS; • Interim Dividend UP 60% to 0.40 CPS (60% payout ratio) from 0.25 CPS; • Overheads DOWN 16% (excluding interest) on 1H2013; • Operatin
Slide 7: 1H2014 Results Summary – Segments
1H2014 Results Summary For personal use only 1H2014 – Wealth Management (WM) • 84% of Revenue; • Revenue DOWN 9% (including CEM Licensing Fees) compared to 1H2013; and • Revenue UP 3% (excluding CEM Licensing Fees) 1H2014 – Accounting & SMSF Services (AS) • 16% of Revenue; and • Revenue UP 1% compar
Slide 8: Key Developments - Operational & Investment Focus 1H2014
Key Developments - Operational & Investment Focus 1H2014 For personal use only 1H2014 • Restructuring the Cost Base - $1.3M benefit to flow through in FY2014 (ON TARGET); • Improvement in traditional Wealth Management Revenue (New Business & Recurring Revenue, excluding Licensing Revenue from Prime’
Slide 9: Key Developments - Operational & Investment Focus 1H2014 (cont…)
Key Developments - Operational & Investment Focus 1H2014 (cont…) For personal use only 1H2014 • Commercial Property Investment Management Business – Protus Prime; - Design and complete the first client offering and Product Disclosure Statement (PDS) for launch in March 2014 (ON TARGET) • As a result
Slide 10: Summary Half Year Results
Summary Half Year Results For personal use only Financial 1H13 1H14 % Change Earnings Before Interest & Tax (EBIT) ($M) 1.68 1.84 +10% Net Profit After Tax (NPAT) ($M) 1.02 1.16 +14% Basic & Diluted Earnings (cents per share) 0.63 0.67 +6% Dividend Paid & Proposed (cents per share) 0.25 0.40 +60% (f
Slide 11: Summary Profit & Loss
Summary Profit & Loss For personal use only % Change 1H13 2H13 1H14 1H13 v 1H14 Wealth Management – New Business Revenue ($M) 1.40 1.70 1.34 -4% Wealth Management – Recurring Revenue ($M) 3.62 3.89 3.84 +6% Wealth Management – Licensing Revenue ($M) 0.92 0.60 0.20 -78% Total Wealth Management Revenu
Slide 12: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 84% of Prime’s Revenue % Change New Business Revenue 1H13 2H13 1H14 1H13 v 1H14 Investment Brokerage ($’000) 794 1,160 815 +3% New Issues & IPO’s ($’000) 214 297 230 +7% Asset Protection & Life Ins
Slide 13: Wealth Management Licensing Revenue
Wealth Management Revenue For personal use only Wealth Management Licensing Revenue % Change 1H13 2H13 1H14 1H13 v 1H14 Licensing Revenue ($’000) 920 600 200 -78% Total ($’000) 920 600 200 -78% Commentary Prime recruited 3 new Partners to the CEM in FY2013, one in each of Victoria, New South Wales a
Slide 14: Key Metrics – New Business Leads
Key Metrics – New Business Leads For personal use only New Business Leads • Prime’s Client Engagement Model New Leads (Monthly (CEM) drives the growth in new leads Average) for Prime’s Wealth Management 60 57 Services. This is driven by: 47 52 50 43 • New Client leads FY10 40 31 FY11 • Additional Se
Slide 15: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin For personal use only Funds Under Management (FUM) Commentary 1H13 2H13 1H14 • Opening FUM ($M) 1,001 1,083 1,098 • FUM decreased by ($21.0M) substantially because of • FUM - New ($M) 47.3 34.2 38.8 Outflow’s related to the • FUM - Outflow ($M) (12.4) (37
Slide 16: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees For personal use only Accounting and SMSF Services Revenue Prime’s now 10 (up from 9) Accounting and SMSF Investees represent 16% of Prime’s Revenue % Change 1H13 1H14 1H13 v 1H14 Accounting and SMSF Revenue ($M) 1.04 1.05 +1% Total 1.04 1.05 +1% Note - Prime’s
Slide 17: Summary Balance Sheet
Summary Balance Sheet For personal use only 30/06/13 31/12/13 Current Assets Cash 0.7 0.3 Other current assets 3.8 4.1 Non Current Assets Receivables 5.4 3.5 Plant & Equipment 1.3 1.2 Investments 61.9 61.9 Total Assets 73.1 71.0 Current Liabilities Payables/Provisions 2.3 2.8 Non Current Liabilities
Slide 18: FY2014 Focus
FY2014 Focus For personal use only FY2014 The plan for the remainder of FY2014 is to; • Continue to promote Prime, communicating our difference and the distinct value we offer in all of our key markets; • Make Prime’s Commercial Property Investment Management Business (Protus Prime) available to inv
Slide 19: Contact
Contact For personal use only Simon Madder Managing Director / CEO Prime Financial Group Ltd Level 17, Como Office Tower 644 Chapel Street South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 simonm@primefinancial.com.au
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