Prime Financial Group Limited · ASX:PFG
Prime Financial — H1 2013 Earnings Presentation
18 slides from Prime Financial's earnings presentation, Feb 28, 2013
Slide 1: Half Year Results Presentation
Half Year Results Presentation For personal use only 28 February 2013 Helping Clients Build Wealth and Protect Assets
Slide 2: Prime Financial Group Ltd – Positioning
Prime Financial Group Ltd – Positioning For personal use only • What do we do? • Provide Integrated Wealth Management Services • Financial Planning • Investment Advice • Life Insurance • Asset Protection Advice incorporating Legal Services • Superannuation, including Self Managed Superannuation, and
Slide 3: Prime Financial Group Ltd – Positioning… cont
Prime Financial Group Ltd – Positioning… cont For personal use only • How do we provide • Through a team of highly qualified Financial Advisers these services? • Located in hubs in VIC, NSW, WA and QLD • Providing cost effective, transparent and consistent advice • Combining Wealth Management Advice
Slide 4: Structure Chart
Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting and SMSF Services 100% Equity $1B+ FUM and over 4,000 clients CPP Primestock Securities Ltd Up to 50% Equity 50% Equity 30 Wealth Management 9 Entities jointly owned Accounting/SMSF with Accounting Firms Fir
Slide 5: 1H2013 Results Summary – Introduction
1H2013 Results Summary For personal use only Introduction • A more positive Business Environment for the Financial Services Sector in the 6 months ending 31 December 2012 • Global & Domestic uncertainty and Low Investor Confidence has started to abate, particularly in the last few months, reflected
Slide 6: 1H2013 Results Summary – Introduction cont
1H2013 Results Summary For personal use only Introduction.. cont • The Operational focus for Prime in 1H2013 has been; • Restructuring the cost base – Reducing ongoing costs by $750K in 2H2013 versus 1H2013, plus further reductions reflected in FY2014 • Improving operating cash flow – Ongoing focus
Slide 7: 1H2013 Results Summary – Introduction cont
1H2013 Results Summary For personal use only Introduction.. Cont • Debt levels have remained flat since 30 June 2012 and Prime’s gearing ratio has decreased from 11.3% (restated) at 30 June 2012 to 11.2% at 31 December 2012 • Directors have declared an Interim Dividend of 0.25cps. This represents a
Slide 8: 1H2013 Results Summary – Wealth Management Results
1H2013 Results Summary For personal use only Wealth Management Results • Overall Wealth Management Revenue grew by 5% • Traditional Wealth Management Revenue (New Business & Recurring) grew by 4% • Licensing Revenue grew by 12% • New Leads were flat for the period • New FUM was $47.3M • Net New FUM
Slide 9: Summary Half Year Results
Summary Half Year Results For personal use only Financial 1H12 1H13 % Change Normalised Earnings Before Interest & Tax 2.66 2.43 - 9% (EBIT) ($M)* Reported Earnings Before Interest & Tax 2.66 1.68 - 37% (EBIT) ($M) Normalised Net Profit After Tax (NPAT) 1.81 1.54 - 15% ($M)* Reported Net Profit Afte
Slide 10: Summary Profit & Loss (Normalised)
Summary Profit & Loss (Normalised) % Change For personal use only 1H12 2H12 1H13 1H12 v 1H13 Wealth Management – New Business Revenue ($M) 1.42 1.26 1.40 - 1% Wealth Management – Recurring Revenue ($M) 3.41 3.48 3.62 + 6% Wealth Management – Licensing Revenue ($M) 0.82 1.00 0.92 + 12% Total Wealth M
Slide 11: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 84% of Prime’s Gross Revenue % Change New Business Revenue 1H12 2H12 1H13 1H12 v 1H13 • Investment Brokerage ($’000) 927 658 794 - 14% • New Issues & IPO’s ($’000) 68 301 214 +215% • Asset Protecti
Slide 12: Key Metrics – Wealth Management Licensing Revenue
Key Metrics –Wealth Management Licensing Revenue For personal use only Wealth Management Licensing Revenue % Change 1H12 2H12 1H13 1H12 v 1H13 Licensing Revenue ($’000) 820 1,000 920 + 12% Total ($’000) 820 1,000 920 + 12% • In FY2012 Prime commenced its licence roll out of Prime’s new Client Engage
Slide 13: Key Metrics – New Business Leads
Key Metrics – New Business Leads For personal use only New Business Leads • Prime’s Client Engagement Model New Leads (Monthly Average) (CEM) drives the growth in new leads 60 for Prime’s Wealth Management 47 52 51 50 Services. This is driven by: • New Client leads 40 31 FY10 • Additional Services f
Slide 14: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin For personal use only Funds Under Management (FUM) 1H12 2H12 1H13 Commentary • Opening FUM ($M) 1,055 1,008 1,001 • The overall increase in FUM of $82m is reflective of the positive • FUM - New ($M) 35.5 33.4 47.3 stockmarket environment and • FUM - Outfl
Slide 15: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees For personal use only Accounting and SMSF Services Revenue Prime’s 9 Accounting and SMSF Investees represent 15% of the Prime’s Gross Revenue % Change 1H12 2H12 1H13 1H12 v 1H13 Accounting and SMSF Revenue ($M) 1.17 0.91 1.04 - 11% Total 1.17 0.91 1.04 - 11% No
Slide 16: FY2013 Targets & Longer Term
FY2013 Targets & Longer Term For personal use only FY2013 • Drive organic growth initiatives to increase the Prime network of Wealth Management Investees and expand service offerings: • Continue to deliver outcomes from Prime’s Client Engagement Model and Wealth Management Joint Venture Licensing st
Slide 17: FY2013 Targets & Longer Term cont
FY2013 Targets & Longer Term FY2013.. Cont. For personal use only • Leverage off key attributes of the Prime business: • Scalable centralised system • Vertically integrated business (Financial Planning, Investment Advice, Life Insurance, Asset Protection incorporating Legal Services, Self Managed Su
Slide 18: 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
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