Slide 1: FY19 Results Presentation
FY19 Results Presentation Bruce Coombes, CEO 27 August 2019 QuickFee Limited
Slide 2: FY19 Highlights
FY19 Highlights A year of strong growth for QuickFee • Achieved significant growth in lending to clients of professional firms ▪ Australia reached a record of $42 million of lending, up 15% on prior year ▪ US hit a record high of US$8 million of lending, up 70% on prior year • Strong growth in the n
Slide 3: FY19 Financial Overview
FY19 Financial Overview Growth achieved across key metrics Total lending book at 30 June (A$m) Revenue ($m) (AUS + US) 30.3 5.8 22.8 1.5 FY18¹ FY19 FY18 FY19 Total lending (A$m) Total firms (AUS + US) (AUS + US) 852 54.4 626 40.6 FY18 FY19 FY18 FY19 1. Period from 15 February – 30 June 2018 * USD/AU
Slide 4: FY19 Financials
FY19 Financials Record revenue result driven by growth in loan book FY19 RESULTS 4
Slide 5: Profit & Loss
Profit & Loss Growth in loan book driving substantial revenue growth • Record revenue result of $5.8m, up 288% of prior year1 FY19 FY181 % ($’000) ($’000) ▪ Comparing to FY18 management accounts, revenue was up 22% in Australia and up 164% Revenue 5,800 1,493 288% in the US Cost of sales (1,982) (54
Slide 6: Balance Sheet
Balance Sheet Fully funded for aggressive growth strategy • Balance sheet significantly strengthened FY19¹ FY18 following IPO that raised $13.5 million % ($’000) ($’000) • Increase in receivables and borrowing reflects Current assets Cash & equivalents 11,281 4,156 171% growth in loan book Trade & o
Slide 7: Operational Overview
Operational Overview Significant growth across all key metrics FY19 RESULTS 7
Slide 8: 2019 client survey
2019 client survey QuickFee continues to increase its client loyalty base • This year’s 2019 Borrower Survey involved more than 4,000 clients of accounting and law firms providing feedback on their experience with a QuickFee loan • Key findings from the survey included: ▪ Over 90% of users surveyed
Slide 9: What clients have to say about QuickFee
What clients have to say about QuickFee “We knew we needed a level of accounting advice we couldn’t afford whilst also investing in the product development itself; QuickFee meant we could set up the business foundations the right way because it helped us spread the cost.” “It allowed us to deal with
Slide 10: Australia
Australia Proven track record of performance Over the last decade, QuickFee has proven its business model and market appetite for its products with strong Australian performance. Funded 90% by NBFI ~70% Pre Tax Return on Equity >$200M Lent Average $4m lending per month FY19 RESULTS 10
Slide 11: AU business model
AU business model Sources of revenue LOAN APPLICATION PAYMENT PORTAL INTEREST INCOME FEE HOSTING FEE ~19.5% YIELD $40 - $300 $39 PER MONTH ON LOAN PER LOAN $3.7m $324k $223k of FY19 revenue of FY19 revenue of FY19 revenue1 1. Includes hosting revenue FY19 RESULTS 11
Slide 12: Australian update
Australian update Gaining strong traction in the Legal market AU Lending (A$m) • The Australian business continues to grow –reached a lending record of $42 million, up 15% • Delivered a pre-tax profit of $851k 42.6 36.9 • Number of firms using the QuickFee platform up 109 to 19.6 23.8 600 ▪ 2 of the
Slide 13: United States
United States Significant US Growth Opportunity QuickFee is aiming to replicate its Australian success in the United States which represents the largest distributor of professional services in the world. 264 firms already signed (129 firms have had clients take one or more loans) 80% funded by NBFI
Slide 14: US business model
US business model Additional revenue source LOAN APPLICATION PAYMENT PORTAL INTEREST INCOME FEE HOSTING FEE 0.5% to 1% ON ALL ~17.5% YIELD $100 PER NON-CREDIT CARD, ON LOAN LOAN NON- LOAN PAYMENTS US$577k US$52k US$269k of FY19 revenue of FY19 revenue of other FY191 1. Includes hosting revenue FY19
Slide 15: United States update
United States update Strong sales momentum being achieved • Best year in lending achieved – up 70% to US$8 million US Lending (US$M's) • Number of firms using the QuickFee platform up 117 to 252 ▪ 12% of Top 100 accounting firms signed up to the QuickFee platform 8.0 ▪ Average loan size of $10,505 4
Slide 16: Outlook
Outlook FY19 RESULTS 16
Slide 17: Addressing market needs
Addressing market needs Practical solutions to common problems Most accounting and law firms have clients paying greater Fact than 60 days after their work has been completed Business Most accounting and law firms pay staff on a monthly cycle Problem thereby creating a significant working capital is
Slide 18: Significant market opportunity
Significant market opportunity Estimated Revenue - Accounting Sector 2018 2017 AU$25 US$175 bn1 bn2 Estimated Revenue - Legal Sector 2018 2017 AU$20 US$276 bn3 bn4 1. Source: https://www.afr.com/business/accounting/2018-top-100-accounting-firms-number-crunchers-follow-the-big-four-into-advisory-2018
Slide 19: QuickFee growth strategy
QuickFee growth strategy Capitalising on our first mover advantage in the US and consolidating our significant Australian market position Build on it’s profitable operating history and significant market position in Australia Take advantage of the largely untapped growth opportunity identified in th
Slide 20: Outlook
Outlook Well positioned for strong growth in FY20 Key priorities for FY20 • Continue to grow loan book in Australia and US ▪ Large professional services markets in Australia and the US represent significant growth opportunities ▪ This will lead to increased revenues and scale benefits • Increase our
Slide 21: Questions
Questions FY19 RESULTS 21
Slide 22: Appendix
Appendix FY19 RESULTS 22
Slide 23: QuickFee Overview
QuickFee Overview Q • QuickFee provides financing to clients of QuickFee accountants and lawyers (professional service firms) $ • High credit quality as loans guaranteed by professional firm • QuickFee has a proven business model with approximately 10 years operating in Australia & 3 years in the U.
Slide 24: QuickFee Platform
QuickFee Platform • The QuickFee Platform allows clients of firms utilising the platform to: • take on financing for invoices raised by the firm; and • pay those invoices by EFT or credit card. • Firms can include a link to the platform on all invoices they issue to Clients and/or a link from the fi
Slide 25: Team
Team Board of Directors Non-Executive CEO & Founder Chairman Director Bruce Coombes Barry Lewin Dale Smorgon Business Development (Client Acquisition) Client Service & Corporate Services Bus. Dev. Team Chief Revenue Marketing Client Service COO & Group Leader (AU) Officer (US) Manager (US) Team Lead
Slide 26: Contact Details
Contact Details: Bruce Coombes, CEO P: +61 418 286 842 E: bruce@quickfee.com.au FY19 RESULTS 26
Slide 27: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about QuickFee Limited activities current as at the date of this presentation (27 August 2019) and is supplementary to the Group’s financial results released to the ASX on 27 August 2019 and previous ASX fili