Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (February 2023)
21 slides from Prime Financial's investor presentation, Feb 17, 2023
Slide 1: Half Year 2023 (‘H1 FY23’) Results Presentation
Half Year 2023 (‘H1 FY23’) Results Presentation Prime Financial Group Ltd (ASX:PFG) 17 February 2023
Slide 2: Who we are
Who we are Purpose Our Operations Empowering you to achieve your Advisory & Capital Group with aspirations 150+ team members primarily across Melbourne, Sydney and Our Services Brisbane Brisbane Integrated Accounting & Business Continued focus on growing Advisory, Wealth Management, Melbourne, Sydne
Slide 3: H1 FY23 Highlights
H1 FY23 +31% to +9% to Highlights 23% $16.1m $3.7m Revenue Growth Underlying EBITDA Operating Margin (members/shareholders) Growth +33% to +40% to Net Debt $9.1m ($3.2m relates to 0.88 cps 0.70 cps Intello Acquisition) Reported Earnings Per Share (EPS) Interim Dividend Up -13% to $2.4m Net Operating
Slide 4: Announcements & Information
Announcements & Information Expansion of Revenue Base & Growth Strategy Completion of New Acquisition Facility • Introduction of Debt Capital Markets Advisory • To enable the completion of the Intello acquisition, Prime • Expansion of Wholesale Client Property Offering agreed a new $10.0m financing
Slide 5: Growth, Strategy & Values
Growth, Strategy ‘Our goal is to double group revenue over three years to $50.0m (FY22: $26.0m) through organic and inorganic activity’ & Values Growth 01. 02. 03. 04. Organically New Revenue Contributors New Service Lines Acquisitions Across all 4 Service Lines - New Clients & Accountants & Adviser
Slide 6: Prime’s 5 year Performance
Prime’s 5 year Performance Positive momentum across all metrics H1 2023 H1 2022 H1 2021 H1 2020 H1 2019 Underlying EBITDA to members/shareholders ($000’s)* 3,707 3,408 2,841 2,411 2,089 Reported profit/(loss) after tax attributable to members/shareholders ($m) 1.7 1.3 1.0 1.2 1.3 Basic earnings per
Slide 7: Key Financial Information
Key Financial Financial Highlights* Prime – Members/Shareholders Information H1 FY23 H1 FY22 Change Underlying H1 FY23 vs H1 FY22 Revenue – Contracts with Customers $16.0m $12.2m 31% Prime’s key profitability measure is Underlying EBITDA for members/ EBITDA** $3.7m $3.4m 9% shareholders. This remove
Slide 8: Revenue Growth & Service Lines
Analysis of Revenue Growth (Contracts with Revenue Growth Customers) by Period +31% FY21 Key +7%* & Service Lines % Revenue Growth Financial +21% +24% *7% of revenue growth in H1 FY23 relates to Highlights +11% +14%$26.2M the Intello (SMSF) acquisition -3% • 80%+ of total revenue is generated from +
Slide 9: Expenses & EBITDA
Expenses Total Expenses by Period & EBITDA H1 FY20 $9.8m $m Total Expenses % Total Expenses Change H1 FY21 $8.9m -9% The increase in expenses was substantially due to: H1 FY22 $10.3m +16% • Increased labour costs to support revenue growth (now 150 team members up from 100, 12 months prior) H1 FY23 $
Slide 10: Margin, Cashflow & Net Debt
Margin, Analysis of Operating Margin by Period % Operating Margin Cashflow & 22% 27% 28% 23% Net Debt H1 FY20* H1 FY21 H1 FY22 H1 FY23 Net Debt by Period +73% The H1 FY23 operating margin of 23% is down vs H1 -16% FY22 due to higher operating costs as we invest for -11% $3.2m $9.1m $m Net Debt gro
Slide 11: Dividends
Dividends Key Dates for Dividends Dividend • H1 FY23 interim dividend declared of 0.70 cps (fully franked) vs interim dividend of 0.50 cps Record Date 6 March 2023 in H1 FY22 (+40%) Payment Date 31 March 2023 • H1 FY23 payout ratio of 60% of reported NPAT (members/shareholders) • Target dividend pa
Slide 12: Balance Sheet, Cashflows & Net Debt
Balance Sheet, Balance Sheet ($m) Group At 31 December 2022 At 30 June 2022 Cashflows & Cash 0.1 0.1 Net Debt Total assets Borrowings 64.9 (9.1) 59.8 (5.4) • Net debt increase of 43% to $9.1m at 31 Total liabilities (17.7) (13.1) December 2022 (-7% vs 31 December 2021, Net assets 47.2 46.6 excluding
Slide 13: Capital Structure & Comparison
Capital Prime’s Capital Structure & Investment Information Market Capitalisation at 23.5 cents* $48m Structure & Net debt at 31 December 2022 $9.1m Share Price* 23.5 cents Comparison Reported EPS (annualised)* 2.16 cps Reported EPS Multiple* 11 times Interim Dividend Payable 0.70 cps Dividend Yield
Slide 14: Together we Aspire, Innovate, Grow and Impact
Environmental, Social & Governance (ESG) Plan Together we Aspire, Innovate, Grow and Impact As we accelerate our growth, we do so with a commitment to impactful corporate citizenship, and the planet in mind, all contributing to creating a just world today and for generations to come We will do this
Slide 15: Outlook & Update | FY23
Outlook & Update | FY23 01. 02. 03. Continued growth in Revenue & Earnings Actively exploring Dividends continue to increase • Revenue Growth 20%+ Organic and inorganic initiatives are accelerating • Interim Dividend +40% to 0.70 cps • Growth in Underlying EBITDA 5% to 10% as part of Prime’s program
Slide 16: Appendices
Appendices
Slide 17: EBITDA & NPAT
EBITDA & NPAT $’000 AUD Reported net profit after tax from operations (Group) H1 FY23 1,992 H1 FY22 1,536 Add: Tax expense 740 354 Attributable to members/ Add: Interest expense/(income) 314 164 shareholders reconciliation EBIT (Group) 3,046 2,055 Add: Depreciation 32 21 Add: Amortisation 786 817 Re
Slide 18: Experienced Board
Experienced Board Simon Madder Matt Murphy Tim Bennett Chief Executive Officer, Managing Director & Executive Director (effective 3 July 2020) & Managing Executive Director (effective 3 July 2020) & Managing Chairman Director – Accounting & Business Advisory Director – Capital & Corporate Advisory •
Slide 19: Contact
Contact Simon Madder CEO, Managing Director & Chairman Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au W www.primefinancial.com.au Ben Priestley Head of Finance & Investor Relations Prime Financial Group Ltd T (03) 9827 6999 E benp@primefinancial.com.au W www.primefinancial
Slide 20: primefinancial.com.au
@® PRIMEFINANCIAL.COM.AU # PRIMEFINANCIALGROUP in PRIMEFINANCIALGROUP
Slide 21: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited Disclaimer (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and concl
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