Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (February 2024)
27 slides from Prime Financial's investor presentation, Feb 20, 2024
Slide 1: Half Year 2024 (H1 FY24) Results Presentation
Half Year 2024 (H1 FY24) Results Presentation Prime Financial Group Ltd (ASX:PFG) 20 February 2024
Slide 2: Connecting Aspirations, Opportunities & Expertise
Connecting Aspirations, Opportunities & Expertise We are a market leading Advice, Capital & Asset Management Group. We believe in uncapped opportunities and are committed to creating prosperous and sustainable financial futures for all. $1.2B FUM 170+ Team Members Global Footprint 4 Service Lines 25
Slide 3: Delivering on Growth
Delivering on Growth Our goal is to double revenue from $26M in FY22 to $50M in FY25 And then double revenue again to $100M within 3-5 years $120 M X2 Organic Growth 3-5 Years Organic growth realised across all service lines: $100 M • Wealth Management • Capital & Corporate Advisory $80 M X2 • Accou
Slide 4: H1 FY24 Overview & Highlights
H1 FY24 Overview & Highlights Prime Financial Group Half Year H1 FY24 Presentation 4
Slide 5: H1 FY24 Highlights: Delivering growth & Investing for the future
H1 FY24 Highlights: Delivering growth & Investing for the future +14% to +2% to 21% $18.2M $3.8M Underlying EBITDA EBITDA Margin Revenue (members/shareholders) +7% 1.4 x Underlying -0.02cps (vs 0.88 cps) 0.75 cps EBITDA to Net Debt Ratio Reported earnings per Interim Dividend Up Net Debt of $11.98M
Slide 6: Strong top-line growth despite challenging Capital Markets
Strong top-line growth despite challenging Capital Markets • Revenue of $18.2 million, up 14% on the prior corresponding period (pcp), driven by strong Wealth Management performance (up 38% on pcp). • Accounting & Business Advisory, SMSF and Capital revenues all up between 1-12%. • Material investme
Slide 7: Financial Results H1 FY24
Financial Results H1 FY24 Strong top-line growth despite challenging capital markets Prime Financial Group H1 FY24 Results Presentation 7
Slide 8: Prime's 5-year Performance
Prime’s 5-year Performance H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY24 CAGR* Underlying EBITDA to members/shareholders ($000’s) 2,411 2,841 3,408 3,707 3,764 12% Reported profit/(loss) after tax attributable to members/shareholders 1.2 1.0 1.3 1.7 0.0 n/a ($M) Basic earnings per share (cents) 0.67 0.58
Slide 9: Profit & Loss
Profit & Loss Investment in business to drive further growth Financial Highlights H1 FY23 H1FY24 Change • Strong top-line growth in H1 FY24, with revenue increasing by 14%, driven by a robust performance in Wealth Management Underlying (up 38% on pcp) plus a moderate contribution from new service Re
Slide 10: Revenue Growth
Revenue Growth % Revenue Growth 70%+ of total revenue is $M Total Revenue generated from existing clients on a recurring basis +14% +31% Revenue growth has accelerated over the past 3 +14% $18.2M years vs the prior periods $50M $50M On target to achieve $50M $10.7M in revenue by FY25 H1 FY21 H1 FY22
Slide 11: Revenue Growth By Service Line
Revenue Growth By Service Line H1 FY21 H1 FY22 H1 FY23 H1 FY24 $ 7M +3% OneConnected Group Vs H1 FY23 +38% $ 6M Vs H1 FY23 • Strong revenue growth (up 38% on pcp) in Wealth Management due to: o Continued and growing focus on $ 5M Wholesale Investment opportunities o A material increase in originatio
Slide 12: Underlying EBITDA and Margin
Underlying EBITDA and Margin Investing for Future Growth – Proven Model • H1 FY24 Underlying EBITDA was $3.8 million, up Underlying EBITDA H1 FY21 – H1 FY24 2% on pcp. This result reflects the continued EBITDA investment in building out service offerings in +9% +2% Capital and Consulting, which are
Slide 13: Balance Sheet, Group Net Debt & Cashflow
Balance Sheet, Group Net Debt & Cashflow At 30 Jun 2023 At 31 Dec 2023 Group Balance Sheet $ $ Cash 1.0 1.0 Total assets 67.1 69.4 Borrowings (10.5) (13.0) Group Net Debt/Underlying EBITDA Total liabilities (17.8) (21.3) increased to 1.4X Underlying EBITDA given investment in growth and final Intell
Slide 14: Dividends
Dividends Dividends H1 FY21 – H1 FY24 Final Dividend - cents per share 1.50 cps • H1 FY24 Interim Dividend declared of 0.75 cps (fully franked) vs interim Interim Dividend - cents per share dividend of 0.70 cps in H1 FY23 (+7%). 1.10 cps • Prime is targeting a moderate dividend increase in future pe
Slide 15: Business Strategy & Outlook
Business Strategy & Outlook To drive doubling of revenue Prime Financial Group H1 FY24 Results Presentation Prime Financial Group Full Year FY23 Presentation 15
Slide 16: Winning, growing and retaining our client of the future
Winning, growing and retaining our client of the future: creating value Emerging Businesses: $0 - $100M Wealth: Wholesale Clients / Investors Business Advisory Wealth Management M&A and Accounting Corporate Services Development Advice SMSF Equity and Outsourced Debt Capital Business CFO Services Wea
Slide 17: Strategy for Growth
Strategy for Growth 1. Topline Growth 2.New Margin Expansion 3. Balance Sheet Strength Revenue • Organic growth in existing service lines and • Contributors Efficiencies driven by centralised operations • Accretive acquisition strategy new services and a shared services model • Funding capability to
Slide 18: Our Commitment to Impact
Our Commitment to 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 by working with our people, partners, clients and the communities
Slide 19: Our Commitment to Ownership
Our Commitment to Ownership Our people are our biggest asset • Currently 45% of our company is owned by the team 45% • We encourage our staff to have an ‘ownership’ mentality and to work collaboratively, enabling them to help co-create the firm of the future Staff & Associates Shareholders • We do t
Slide 20: Outlook FY24 - Continuing to Deliver Results
Outlook FY24 - Continuing to Deliver Results 1 2 3 4 Strong Organic Delivering Scale FY24 Growth Accretive Efficiencies to Driving Growth Acquisitions Drive Earnings in Revenue, Earnings & Dividends • Organic growth to be • Funding capability • Investment in team On track to deliver driven across co
Slide 21: Appendices
Appendices Prime Financial Group H1 FY24 Results Presentation 21
Slide 22: EBITDA & NPAT
EBITDA & NPAT $’000 AUD H1 FY 23 H1 FY24 Reported net profit after tax from operations (Group) 1,992 215 Add: Tax expense 740 166 Add: Interest expense/(income) 314 510 EBIT (Group) 3,046 892 Add: Depreciation 32 67 Add: Amortisation 786 1,042 Reported EBITDA (Group) 3,864 2,000 Reconciliation of Re
Slide 23: Non-recurring expense items: H1 FY24
Non-recurring expense items: H1 FY24 H1 FY24 was unfavourably impacted by the following non-recurring expense items, totalling $2,096k: Acquisitions, Restructuring & Repositioning Investment in New Service Offerings $1,176k $920k • Intello & Altor acquisition expenses • Establishment expenses • Busi
Slide 24: Experienced Board
Experienced Board Simon Madder Tim Bennett Matt Murphy Managing Director & Chairman Executive Director (effective 3 July 2020) & Executive Director (effective 3 July 2020) Managing Director – Business • Co-founder & Managing Director of Prime Financial Group Ltd (Prime) since 1998 • Established the
Slide 25: Senior Leadership Team
Senior Leadership Team Simon Madder CEO, Managing Director & Chairman Ben Priestley Alicia Sanders Nat Simmons Tim Bennett Head of Finance Group General Manager & Chief Operating Officer Managing Director - Business & Investor Relations Company Secretary Prime Financial Group H1 FY24 Results Present
Slide 26: CONTACT
CONTACT Simon Madder Ben Priestley Eric Kuret 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 eric.
Slide 27: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Disclaimer Group Limited (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and Summa
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