Prime Financial Group Limited · ASX:PFG
Prime Financial — H1 2018 Earnings Presentation
28 slides from Prime Financial's earnings presentation, Feb 28, 2018
Slide 1: Prime Financial Group Ltd – Half Year 2018 Results Presentation
For personal use only Prime Financial Group Ltd (ASX: PFG) – Half Year 2018 Results Presentation 28 February 2018
Slide 2: Overview
For personal use only 2 Overview
Slide 3: H1 2018 Key Highlights
H1 2018 Key Highlights For personal use only 1. Strong revenue growth – revenue increased 25% compared to H1 2017 driven by acquisition of Altezza Partners and strong organic growth 2. Underlying EBITDA consistent with prior year despite investments in growth initiatives 3. Increased dividend - inte
Slide 4: H1 2018 Key Highlights: Investments in Growth Initiatives
H1 2018 Key Highlights For personal use only Investments in In H1 2018, as reported in the FY17 investor presentation, Prime has continued to invest in future growth through: Growth Initiatives 1. New Products & Services – in H1 2018, five new products and services were developed to increase organic
Slide 5: Financial Information
For personal use only Financial Information 5
Slide 6: H1 2018 Performance Highlights
H1 2018 Performance Highlights For personal use only Group Revenue [$m] Funds Under Management (FUM) [$m] Separately Managed Accounts (SMA) FUM [$m] +25% +2% +43% Vs H1 2017 Vs 30 June 2017 Vs 30 June 2017 Significant revenue growth driven by impact of Altezza FUM growth was muted in H1 2018 but Pri
Slide 7: Dividends
Dividends For personal use only H1 2018 versus H1 2017 Dividend (cents per share): Key Dividend Dates: Interim dividends: Date Record date for determining entitlements to the dividend 3 April 2018 Payment date for Interim dividend 27 April 2018 +12.5% Final dividend: Vs H1 2017 Expected payment date
Slide 8: H1 2018 Revenue
H1 2018 Revenue For personal use only H1 2018 Revenue by Source (%): H1 2017 vs H1 2018 Revenue by Source ($m): • xx xx • FY17 acquisition activity has diversified Prime’s revenue base • Revenue growth across all divisions including above inflation with Accounting & Business Advisory and Capital rev
Slide 9: H1 2018 Balance Sheet & Cash flow
H1 2018 Balance Sheet & Cash flow For personal use only • Balance sheet remains strong • Group net debt at 31 December 2017 was $0.4 million higher than 30 June 2017 • Operating cash flow for H1 2018 was $1.7 million Balance Sheet Cash flow $m Group At 31 Dec At 30 Jun $m Group H1 2018 H1 2017 2017
Slide 10: Update on Employee Share Plan Accounting
Update on Employee Share Plan Accounting For personal use only • Loan Plan Summary • Prime has provided executive directors and employees with loans to acquire Prime shares • No more shares are expected to be allocated to the Prime Employee Share Plan (ESP) loan scheme, and in July 2017 shareholders
Slide 11: Strategic Update
For personal use only 11 Strategic Update
Slide 12: Strategic Objectives
Strategic Objectives For personal use only Prime exists to support business owners, entrepreneurs and growth orientated people to realise their dreams, Purpose build and manage their wealth and access capital Goal To be the leading integrated advice firm of the future Prime helps its clients and bus
Slide 13: Strategic Initiatives
Strategic Initiatives For personal use only Key Strategic Initiatives Deliver strong organic growth across all areas and improve Underlying EBITDA margin via cost efficiencies from Organic Growth scale and technology investment Execute acquisitions which are earnings accretive, strategically importa
Slide 14: Organic Growth Strategy
Organic Growth Strategy For personal use only Prime’s Organic Strategy will be driven by the following: − Becoming the primary capital and services partner to entrepreneurs and business owners (Dream to Realisation) − Delivering more services, advice and value to new and existing clients − Build and
Slide 15: Acquisitions Strategy
Acquisitions Strategy Integration of FY17 acquisitions complete and strong acquisition pipeline For personal use only Integration of MPR & Altezza • In the last 18 months Prime has successfully acquired and integrated MPR and Altezza • Both businesses (now part of the Accounting & Business Advisory
Slide 16: Acquisitions Strategy: Divestment of Equity Accounted Investments
Acquisitions Strategy Continued Progress on Divestment of Equity Accounted Investments For personal use only • Prime’s acquisition strategy is to acquire operating businesses which it can integrate and grow • Prior to FY17, Prime’s strategy was to acquire minority equity stakes in accounting firms a
Slide 17: Partnerships
Partnerships For personal use only • Prime is investing in the future by creating strategic partnerships with Groups which provide the following: 1. Sources of Capital for Prime’s business owner and entrepreneur clients; and 2. Alternative Investment Opportunities for Prime’s wealth management clien
Slide 18: Systems Strategy
Systems Strategy Separately Managed Accounts Strategy Successfully Delivered For personal use only • Separately Managed Accounts (SMA) strategy has been successfully delivered Prime SMA Portfolio Performance (To 31 December 2017) • The benefits include scalability, margin efficiencies and an enhance
Slide 19: Community
For personal use only 19 Community
Slide 20: Community Give Back
Community Give Back For personal use only The Captain’s Ride Prime is proud to have been the major sponsor of this event in 2017 The Captain’s Ride is the highlight of The Steve Waugh Foundation’s annual campaign to raise significant funds and champion the stories of and provide life changing suppor
Slide 21: Contact
Contact For personal use only Simon Madder Managing Director/CEO Prime Financial Group Ltd (T) (03) 9827 6999 (E) simonm@primefinancial.com.au (W) www.primefinancial.com.au 21
Slide 22: Appendices
For personal use only 22 Appendices
Slide 23: Prime At A Glance
Prime At A Glance For personal use only ASX Listed National Presence Business Model • Established in 1998 • 90+ team members across Melbourne, • Prime offers integrated Accounting, Sydney, Brisbane, Perth and Cairns Business Advisory, Wealth Management • Accounting & Wealth Management and Capital se
Slide 24: Services We Offer
Services We Offer For personal use only Accounting & Wealth Business Management Capital Advisory • Accounting & Tax Compliance • Financial & Retirement • Corporate Advisory • Director & Board Services Planning • Transactions & • Management Advisory • Investment Advice Restructuring • Start Up Servic
Slide 25: Strong, Entrepreneurial & Experienced Board
Strong, Entrepreneurial & Experienced Board The Board has the background, proven track record & vision to succeed For personal use only Paul Cowan Simon Madder Independent Non-Executive Managing Director Chairman & CEO Executive Director River Capital Co-founder, Managing Director & (Funds Managemen
Slide 26: Reconciliations of Reported NPAT to Underlying EBITDA and NPAT
Reconciliations of Reported NPAT to Underlying EBITDA and Reported NPAT Attributable to Members to Underlying NPAT Attributable to Members For personal use only EBITDA reconciliation: NPAT attributable to members reconciliation: $000 AUD H1 H1 $000 AUD H1 H1 2018 2017 2018 2017 Profit after tax from
Slide 27: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This investor presentation (Presentation) has been prepared by Prime Financial Group Limited (PFG). Summary Information This Presentation contains summary information about PFG. The information in this Presentation is general background informati
Slide 28: For personal use only
For personal use only Accounting & Wealth Management Capital Business Advisory 1800 064 959 1800 317 006 1800 317 005
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