Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (August 2019)
22 slides from Prime Financial's investor presentation, Aug 30, 2019
Slide 1: Full Year 2019 (‘FY19’) Results Presentation
Prime Financial Group Ltd (ASX: PFG) Full Year 2019 (‘FY19’) Results Presentation
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited Disclaimer (‘PFG’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclus
Slide 3: Key Points & Outlook
Key Points & Outlook Completion of Restructure Focus – one simplified Momentum and and Repositioning in FY19 – business & client positive growth divestment/completion of final experience, continued minority equity interests & organic growth and earnings outlook as one investment vehicle. PWM plus im
Slide 4: Key Financial Metrics
Key Financial Metrics FY19 versus FY18 Prime Financial – Prime’s key profitability measure is Prime Financial – Group Members/Shareholders underlying EBITDA for FY19 Financial Highlights* members/shareholders FY19 FY18 Change FY19 FY18 Change Underlying EBITDA for Underlying members/shareholders rem
Slide 5: FY19 Highlights
FY19 Highlights Priorities & Deliverables: Organic revenue growth accelerating (contracts with customers) • H1 FY19 revenue was 2% higher than H1 FY18 Key Takeaways • H2 FY19 revenue was 9% higher than H2 FY18 • FY19 revenue was 5% higher than FY18 Completion of Restructure & Repositioning Integrati
Slide 6: Performance by Segment
Performance by Segment Prime has two reporting segments from previously one reporting segment; Key Takeaways • Wealth Management & SMSF – Wealth Management, Financial Planning plus SMSF services and advice • Segment performance is evaluated based on segment profit/loss. The • Accounting, Business Ad
Slide 7: Revenue
Revenue Contracts with Customers Analysis of Revenue Growth – FY17 to FY19 How are we growing? Revenue (AUD million) • Additional group services to existing clients FY19 vs FY18 FY17 FY18 FY19 • New client growth through % increase specialist skills and direct Wealth Management & SMSF 9.4 9.9 10.3 +
Slide 8: Restructure & Repositioning
Restructure & Repositioning Non Recurring Expenses In FY19, Prime have (1) sold the remaining minority equity interests and non Key Takeaways core assets (2) closed the financing structure PWM (3) closed, relocated and consolidated offices (4) restructured the Wealth Management operating • Reported
Slide 9: EBITDA & NPAT
EBITDA & NPAT Attributable to Members/Shareholders Reconciliation $000 AUD FY19 FY18 Reported net profit after tax from operations (Group) 2,227 131 Add: Tax expense 350 431 Add: Interest expense/(income) 559 503 EBIT (Group) * 3,136 1,065 Add: Depreciation 255 235 Add: Amortisation 887 699 Reported
Slide 10: Balance Sheet, Cash Flow & Net Debt
Balance Sheet, Cash Flow & Net Debt Balance Sheet Group (AUD million) At 30 June 2019 At 30 June 2018 Key Takeaways Cash 0.2 0.9 • Operating cash inflow difference largely due Total assets 55.5 60.5 to the increase in non-recurring expenses Borrowings (9.6) (8.6) (refer to slide 8) Total liabilities
Slide 11: Dividends
Dividends • Dividends to be paid from operating cashflow Key dates for dividend and • Target dividend payout ratio of 40 – 60% of reported and maintainable DRP earnings Record Date 27 September 2019 • FY19 final dividend of 0.20 cents per share (‘cps’) (fully franked) Payment Date 1 November 2019 •
Slide 12: Wealth Management – Regulatory & Operations
Wealth Management – Regulatory & Operations • Prime supportive of transparent and open process of Hayne Royal Commission • Long term positive for clients, Prime’s business, advice and growth model Key Takeaways • Prime’s Restructure & Repositioning in FY19 included a review of Wealth Enhanced contro
Slide 13: Outlook for Members/Shareholders – FY20
Outlook for Members/Shareholders – FY20 Align underlying Continued organic EBITDA to reported Prioritise people, client Strong cost control Grow earnings service & compliance growth EBITDA Improve cash flow Reduce debt Increase dividends Accelerate Do less, better integration 13
Slide 14: Contact
Contact Simon Madder Managing Director/CEO Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au W www.primefinancial.com.au Rory McLaughlin Group Financial Controller Prime Financial Group Ltd T (03) 9827 6999 E rorym@primefinancial.com.au W www.primefinancial.com.au Ben Priestl
Slide 15: Appendices
Appendices
Slide 16: Who We Are
Who We Are Service Operations Integrated Accounting & Business Advisory, 100+ team members primarily across Wealth Management, SMSF and Capital Melbourne, Sydney and Brisbane Services with over $1 billion of client funds under management (FUM) Continued focus on growing three core hubs in Melbourne,
Slide 17: Capital Structure & Comparisons
Capital Structure & Comparisons Top 20 Shareholders Prime’s capital structure Shares on issue (includes treasury shares) at 30 June 2019 190.9 million 57% Market Capitalisation at 5.50 cents on 28 August 2019 closing $10.5 million Investment information Prime’s comparable companies FY19 Company ASX
Slide 18: Segment Services & Revenue
Segment Services & Revenue Wealth Management & Protection plus SMSF – 47% • Financial Planning & Strategic Advice • Retirement Planning • Superannuation Advice • Investment Advice • Life Insurance Accounting & Business Advisory plus • SMSF Establishment, Advice, Administration Capital & Corporate Ad
Slide 19: Typical Clients
Typical Clients Accounting & Business Self-Managed Super Funds Advisory • Personalised SMSF administration • Start-ups, Scale-ups and • Provide Financial Advisers with established businesses with $1 personalised service and specialist million - $30 million revenue support and offer bespoke • Austral
Slide 20: Strategic Plan
Strategic Plan AREAS & OBJECTIVES FY20 KEY PRIORITIES Customer Organic Growth Provide clients with advice, growth • Integrate Prime’s Accounting & Business Advisory and Wealth Management client bases opportunities and wealth management PURPOSE, GOAL & HOW services • Deliver additional business and c
Slide 21: Core Hub Strategy
Core Hub Strategy Melbourne, Sydney & Brisbane Prime is ‘One Connected’ professional Core Hub – Brisbane • Accounting & Business Advisory services firm, operating across four key • Wealth Management & Protection areas in Accounting & Business • SMSF • Capital & Corporate Advisory Advisory, Wealth Ma
Slide 22: Experienced Board
Simon Madder Experienced Chief Executive Officer & Managing Director • Co-founder, Managing Director & CEO of Prime Financial Group Ltd (Prime) Board since 1998 • 20 years’ experience in Wealth Management & Accounting Services across Operations, Strategy & Acquisitions • Share Ownership: 28.5m (14.8
Prime Financial Group — Investor Presentation (August 2019) on 6ix