Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (August 2024)
28 slides from Prime Financial's investor presentation, Aug 22, 2024
Slide 1: Full Year 2024 (FY24) Results Presentation
Full Year 2024 (FY24) Results Presentation Prime Financial Group Ltd (ASX:PFG) 22 August 2024
Slide 2: Who We Are
Who We Are Connecting Aspirations, Opportunities & Expertise PFG are a market leading Advice, Capital & Asset Management Group. Our focus is on Emerging Businesses, Founders and High Net Worth Investors. We believe in uncapped opportunities, prosperous and sustainable financial futures and impactful
Slide 3: What We Do
What We Do PFG has two segments and four key service lines plus a centralised/shared services structure Business Segment Prime Accounting & Business Accounting & Tax Compliance, Business Growth Advisory & Strategy, Outsourced CFO & Accounting Services plus Grants 32% of Group Revenue Advisory (PABA)
Slide 4: How We Do It
How We Do It Building scale organically, and via acquisition to add capabilities and clients Complete solutions for Business & Wealth Business Segment Wealth Segment Accounting, Tax, R&D and Business Wealth Advisory SMSF Advice & Management Administration Advice Corporate Outsourced Finance, M&A CFO
Slide 5: Financial Results FY24
Financial Results FY24 Delivering on guidance Prime Financial Group FY24 Results Presentation 5
Slide 6: FY24 Financial Highlights: Delivering on guidance
FY24 Financial Highlights: Delivering on guidance +21% to +18% to 25% $40.8M $10.2M (FY23: 26%) Underlying EBITDA Underlying EBITDA Total Revenue (members/shareholders) Margin +7% to 1.1x Underlying 1.37 cps (vs 2.22 cps) 1.60 cps EBITDA to Net Debt Ratio Reported Earnings per Net Debt of $11.3M Ful
Slide 7: FY24 Operational Highlights: Building scale
FY24 Operational Highlights: Building scale • Strong revenue growth across both of our operating segments • Wealth up 24% • Business up 19% • Integration of acquisitions progressing successfully, with new businesses seamlessly fitting into the “OneConnected” model • Funds Management (Altor), Capital
Slide 8: Profit & Loss
Profit & Loss Delivering on guidance FY24 YoY Financial Highlights FY23 • Revenue – up 21% Change H1 H2 Total • Strong revenue growth across both operating segments, driven by organic and inorganic growth Underlying • Expenses – increased 22% Revenue – Wealth $15.2M $8.5M $10.3M $18.8M 24% ↑ • Incre
Slide 9: History of Strong Revenue Growth
History of Strong Revenue Growth $M 50 70%+ of total revenue is 45 A$41M generated from existing clients 40 A$34M on a recurring basis 35 30 A$26M Revenue growth has accelerated 25 A$21M A$22M over the past 3 years vs the prior 20 periods 15 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 On targe
Slide 10: Underlying EBITDA and Margin
Underlying EBITDA and Margin Investing for growth – proven model Underlying EBITDA FY20 – FY24 • Underlying EBITDA was $10.2M, up 18% Underlying +18% EBITDA • Reflects continued investment in building out service Underlying +11% offerings, growth in existing service lines and a EBITDA Growth positiv
Slide 11: Balance Sheet, Group Net Debt & Cashflow
Balance Sheet, Group Net Debt & Cashflow At 30 Jun 2024 At 30 Jun 2023 Group Balance Sheet Substantial balance sheet flexibility $ $ Cash 0.5 1.0 • Group Net Debt/Underlying EBITDA was 1.1X Total assets 82.1 67.1 Underlying EBITDA Borrowings (11.8) (10.5) Total liabilities (29.4) (17.8) • Reflects i
Slide 12: Dividends
Dividends 26% • Final dividend of 0.85 cps, up 6.3% on Dividends FY20 – FY24 pcp (FY23: 0.80 cps) Full Year Dividend - cents per share • Full year dividend declared of 1.60 cps, up 7.0% on pcp (FY23: 1.50 cps) • Dividends fully franked 1.60 1.50 • Dividend Reinvestment Plan (DRP) 1.10 available for
Slide 13: Prime's 5-year Performance
Prime’s 5-year Performance $M 10 Cents Per Share CAGR* 2.5 9 8 16% Underlying EBITDA 2 7 6 5 1.5 8% Reported Profit 4 1 3% Earnings per 3 Share 2 0.5 1 0 FY20 FY21 FY22 FY23 FY24 0 37% Dividend per Share Underlying EBITDA Reported Profit Basic Earnings Per Share Dividend Per Share *Compound Annual G
Slide 14: Strategy & Outlook
Strategy & Outlook Prime Financial Group FY24 Results Presentation 14
Slide 15: Operating in Attractive Markets
Operating in Attractive Markets Our ‘OneConnected’ solution focuses on Emerging Businesses, Founders and High Net Worth Investors • Two large and high growth segments – Wealth and Business Demographic profile of Australia's affluent investor segment • Level of affluence amongst Australians continues
Slide 16: Our Strategic Pillars – How We Think About The Business
Our Strategic Pillars – How We Think About The Business Prime Place Compel Simplify The Grow To Be The Client Business Revenue Streams Our people & culture Growth, Business efficiency Through organic OneConnected, driving bottom line growth and Integrated Solutions results acquisitions Prime Financi
Slide 17: Strategy for Growth – Business & Wealth
Strategy for Growth – Business & Wealth • Organic growth in existing service lines and new services Our goal is to double revenue from $26M in FY22 to $50M in • Recruiting people with an existing revenue and client FY25 – on track base And then double revenue again to $100M within 3-5 years – on • C
Slide 18: Outlook: Expect To Generate 15-20% Revenue Growth In FY25
Outlook: Expect To Generate 15-20% Revenue Growth In FY25 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 • Continued integration of • Investment in team, • Prime philosophy is
Slide 19: Summary
Summary Market-leading Advice, • Provides full-service Advisory, Capital and Asset Management in the Business & Wealth segment Capital and Asset Management Group • 26-year history, $1.2 billion FUM and a global footprint • Revenue growth has accelerated over the 5 years Strong track record of revenu
Slide 20: 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
Slide 21: Appendices
Appendices Prime Financial Group FY24 Results Presentation 21
Slide 22: 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, to Capital division platform Management B
Slide 23: 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 “Our work with ABC provides $300k+ across the client’s broader network $6k growing an excellent examp
Slide 24: 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 Altor (Wealth) (Alternativ
Slide 25: Why Ownership Matters
Why Ownership Matters Our people are our biggest asset • Currently 45% of our company is owned by the staff and associates • We encourage our staff to have an ‘ownership’ mentality and to work collaboratively, enabling them to help co-create the firm of the future 45% Staff & Associates • We do this
Slide 26: EBITDA & NPAT
EBITDA & NPAT $’000 AUD FY23 FY24 Reported net profit after tax from operations (Group) 4,983 3,419 Add: Tax expense 1,694 1,450 Add: Interest expense/ (income) 706 1,213 EBIT (Group) 7,383 6,082 Add: Depreciation 71 152 Add: Amortisation* 1,696 2,122 Reported EBITDA (Group) 9,150 8,356 Reconciliati
Slide 27: Non-Recurring Expense Items
Non-Recurring Expense Items • FY24 was unfavourably impacted by the following non-recurring expense items, totalling $2.6M • One-off adjustments split $2.1M in H1 and $0.5M in H2, which reflects a more normalised operating rhythm Acquisitions, Restructuring & Repositioning Investment in New Service
Slide 28: 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
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