Sequoia Financial Group Ltd. · ASX:SEQ
Sequoia Financial — Investor Presentation (February 2023)
12 slides from Sequoia Financial's investor presentation, Feb 27, 2023
Slide 1: 2023 Half Year Results Presentation
2023 Half Year Results Presentation Garry Crole, Managing Director 27 February 2023
Slide 2: Disclaimer
Disclaimer This presentation is for general information purposes only and should be read in conjunction with the Half Year Financial Report for the six months ended 31 December 2022 and the Appendix 4D lodged with the Australian Securities Exchange by Sequoia Financial Group Limited (ASX:SEQ) on 27
Slide 3: Agenda
Agenda 1. Financial performance 2. Divisional breakdown 3. Business update 4. Questions 2023 Half Year Results Sequoia Financial Group | 3
Slide 4: Financial Results Half year 31 December 2022
Financial Results Half year 31 December 2022 Revenue: December 2022 December 2021 Total Income $61.1m $79.1m Gross Profit $16.3m $17.9m Profit: EBITDA (Operating Profit) $3.2m $5.5m NPBT $1.6m $3.8m NPAT $0.6m $2.6m *Abnormal >$2.0 m Dividend 0.7 cents 0.5 cents Cash balance at December 31, 2022 exc
Slide 5: Licensee Services Division
Licensee Services Division Total Revenue $34.8m compared to $32.9m in PCP Gross Profit $6.2m compared to $5.9m in PCP, EBITDA $2.0m (which included heavy remediation costs – see later) compared to $2.5m of EBITDA in PCP. This confirms our opinion that excluding abnormal items, the business has impro
Slide 6: Professional Services Division
Professional Services Division Total Revenue of $4.1m compared to $4.5m in PCP Gross Profit of $3.0m improved from $2.8m in PCP as a result of increased pricing in June 2022. EBITDA of $0.9m compared to $1.1m was lower than budgeted due to unexpected increased employment, transport and marketing cos
Slide 7: Equity Market Division
Equity Market Division Total Revenue $20.6m compared to $40.8m in PCP with the Morrison Securities business representing a much higher 68% of total revenue ($14.0m) in this period compared to 37% of the total revenue in the PCP. Gross Profit was $5.9m compared to $8.5m in the PCP period. Morrison Se
Slide 8: Direct Investment Division
Direct Investment Division Total Revenue of $1.8m compared to $1.0m in PCP. Gross Profit of $1.1m compared to $0.7m in PCP and the EBITDA result of $0.1m compared to $0.4m was a major disappointment following a series of acquisitions we had anticipated would add scale and EBITDA margin of $0.8m per
Slide 9: Summary
Summary Our 1H23 result was below expectation, mainly due to items outside of our control, however, also partly due to our underperformance in our Direct Investment Division. In the overall market, adviser numbers have fallen from 26,000 to 16,000 over the last 18 months. ASX equity trading volumes
Slide 10: Major impacts to Financials
Major impacts to Financials Our Licensee Services business has now fully expensed over $2m of remediation costs paid to investors as a result of advice provided in 2019 by an adviser no longer with us. In this case AFCA used its discretion to hear and make a determination on matters relating to whol
Slide 11: Questions?
sequoia FINANCIAL GROUP Questions?
Slide 12: Contacts
CONTACTS Garry Crole | Managing Director and CEO garrycrole@sequoia.com.au Web: www.sequoia.com.au Phone: +61 (0)3 8548 3333
Sequoia Financial Group — Investor Presentation (February 2023) on 6ix