Prime Financial Group Limited · ASX:PFG
Prime Financial — FY2009 Earnings Presentation
12 slides from Prime Financial's earnings presentation, Aug 28, 2009
Slide 1: Full-Year Results Presentation FY 2009
For personal use only Full-Year Results Presentation FY 2009 National Financial Services & Advisory Group
Slide 2: Results Overview – FY09
Results Overview – FY09 For personal use only Net Profit After Tax $1.08M Net Profit After Tax $2.74M (Excluding Non-cash Capital Loss on Sale of Armytage Private Ltd (Armytage) of $1.66M) Excluding Capital Items, FY09 Earnings Before Interest Tax (EBIT) $4.24M versus $7.41M FY08 (Down 42%)
Slide 3: Key Points – FY09
Key Points – FY09 For personal use only Financial Planning new business & recurring income down 30% (approx) - Reached Low in 3rd Quarter FY09 - Deterioration in equity markets & client confidence = key reason - Financial Planning Operating Margins improved & normalised in 4th Quarter FY09 Succe
Slide 4: Key Points – FY09
Key Points – FY09 For personal use only Divested Non-Core Service Line - Armytage (Funds Management) Focus = Financial Planning, Self Managed Super (SMS) and Accounting Services - Contributes 100% of earnings - Core part of the past 10 years successful growth / business plan
Slide 5: Financial Information
Financial Information For personal use only Financials (2006, 2007, 2008 & 2009) % 2006 2007 2008 2009 Change Earnings before interest & tax (EBIT) ($M)* 2.17 6.53 7.41 4.24 (42%) Net profit after tax ($M)* 1.90 5.12 6.14 2.74 (55%) Dividend paid & proposed ($M) 1.27 3.11 3.80 0 N/A Basic earnings (
Slide 6: Profit by Service Line
Profit by Service Line For personal use only Financial Planning Accounting Total & SMSF’s Services ($M) ($M) ($M) Total Revenue 10.03 18.83 28.86 Total Expenses (inc. head office) (8.03) (15.50) (23.53) Income Tax Expense (0.36) (1.00) (1.36) NPAT* 1.64 2.33 3.97 Prime’s Share of Ordinary 1.64 1.10
Slide 7: Financial Planning & Self Managed Super
Financial Planning & Self Managed Super (SMS) For personal use only Financial Planning & Self Managed Super - Previously 80 – 90% of earnings Currently 60% (50% in 1H09) - Reduction due to stockmarket impact on Financial Planning Retail & Wholesale (50 / 50 equity agreements with 30 Accounting F
Slide 8: Financial Planning & SMSF Key Points
Financial Planning & Self Managed Super (SMS) For personal use only Key Points - Retail & Wholesale Financial Planning Operations steadily improved in line with stockmarkets & client confidence in the 4th Quarter FY09 - Specialist skills - SMSF, Retirement Planning & Direct Equity Investing (Point
Slide 9: Financial Planning Current Operations
Financial Planning & Self Managed Super (SMS) For personal use only Current Operations - As stockmarkets fell to an eventual low in 3rd Quarter FY09 new client meetings fell – Advisers focussed attention on the existing client base - By 4th Quarter new client meetings started to build back closer
Slide 10: Accounting Services
Accounting Services For personal use only 7 Accounting Services Investments (Typically 50% equity) - Previously 10 – 20% of earnings Currently 40% (50% in 1H09) – Higher than typical due to impact of market deterioration on Financial Planning FY09 - In line with FY08 - 4 achieved minimum profit
Slide 11: Looking Forward – FY10
Looking Forward – FY10 For personal use only FY09 was a setback due to extraordinary stockmarket & economic activity - Prime’s Business Model proved resilient, operations were consolidated & non-core businesses promptly divested Future Growth optimised by continuing to execute the core growth /
Slide 12: 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