Prime Financial Group Limited · ASX:PFG
Prime Financial — H1 2009 Earnings Presentation
12 slides from Prime Financial's earnings presentation, Feb 26, 2009
Slide 1: Half-Year Results Presentation 31 December 2008
For personal use only Half- Half-Year Results Presentation 31 December 2008 26 February 2009 Presented by – Simon Madder (Managing Director & CEO) National Financial Services & Advisory Group
Slide 2: Results Overview – 1H09
Results Overview – 1H09 For personal use only Net Profit After Tax $1.19M (Excluding Non-cash Capital Loss on Sale of Armytage Private Ltd (Armytage) of $1.66M) Net Loss After Tax ($470K) Excluding Capital Items, 1H09 Earnings Before Interest Tax (EBIT) (EBIT) $1.88M versus $2.92M (1H08) 1H09 EBIT a
Slide 3: Key Points – 1H09
Key Points – 1H09 For personal use only (approx) Financial Planning new business & recurring income down 30% (approx) - Smaller fall than the All Ordinaries - Deterioration in equity markets & client confidence = key reason Successful integration of the Prime & CPP Financial Planning Operations Oper
Slide 4: Key Points – 1H09
Key Points – 1H09 For personal use only 2008) – conditions remain Guidance extremely difficult for full year (refer AGM November 2008) volatile, constantly reviewing market effect on earnings - Typically Financial Planning contribution to 2nd Half earnings more significant than 1st Half No interim d
Slide 5: Financial Information
Financial Information For personal use only Financials (2006, 2007, 2008 & 1st Half 2008 & 2009) 1st Half 1st Half % 2006 2007 2008 2008 2009 Change Earnings before interest & tax (EBIT) ($M) 2.17 6.53 7.44 2.92 1.88 (36%) Net profit after tax ($M) 1.90 5.12 6.14 2.43 1.19 (51%) Dividend paid & prop
Slide 6: Profit by Service Line
Profit by Service Line For personal use only Financial Planning Accounting Total & SMSF’ SMSF’s Services ($M) ($M) ($M) Total Revenue 5.23 10.10 15.33 Total Expenses (inc. head office) (4.42) (7.99) (12.41) Income Tax Expense (0.21) (0.63) (0.84) NPAT* 0.60 1.48 2.08 Prime’s Prime s Share of Ordinar
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 50% - Reduction due to Market Impact on Financial Planning Retail & Private Client Financial Planning (Prime & CPP) & White Label / Wholesale throug
Slide 8: Financial Planning & SMSF Key Points
Financial Planning & Self Managed Super (SMS) For personal use only Key Points - Access to + 40,000 potential clients - base of organic growth for past 7 – 8 years - more staff available to grow and increase penetration - Specialist skills - SMSF, Retirement Planning & Direct Equity Investing (Point
Slide 9: Financial Planning & SMSF Current Operations
Financial Planning & Self Managed Super (SMS) For personal use only Current Operations - Generally consistent level of new client meetings, greater focus on existing clients - New Business revenue lower (approx 30%) – Clients hesitant, ‘Why buy today when it may be cheaper tomorrow?’ - ‘Direct Equit
Slide 10: Accounting Services
Accounting Services For personal use only 7 Accounting Services Investments (Typically 50% equity) - 10 – 20% of earnings Currently 50% - Higher due to impact of market deterioration on Financial Planning Planning Current Operations - performing well - 3 performing inline with minimum profit expecta
Slide 11: Looking Forward - 2009
Looking Forward - 2009 For personal use only Focus on Core Operations – Growth Opportunities - Financial Planning, Self Managed Super & Accounting Services - Build from strong historic core base of business - Enlarged team of Financial Advisers through integration of Prime & CPP Financial Planning &
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
Prime Financial Group — H1 2009 Earnings Presentation on 6ix