Kelly Partners Group Holdings Ltd. · ASX:KPG
Kelly Partners — FY2018 Earnings Presentation
29 slides from Kelly Partners's earnings presentation, Aug 27, 2018
Slide 1: FY18 Full Year Results
Kelly+Partners Group Holdings Limited (KPGH) FY18 FULL YEAR RESULTS ASX: KPG 27 August 2018 Copyright © 2018 Kelly + Partners All Rights Reserved. Transforming the SME accounting market
Slide 2: Quote from Tom Murphy, Capital Cities/ABC
“The goal is not to have the longest train, but to arrive at the station first using the least fuel” Tom Murphy, Chairman & CEO of Capital Cities/ABC Inc.
Slide 3: Table of Contents
Table of Contents Section 1: FY18 Results - Overview Section 2: FY18 Results - Financial Information Section 3: Review of Accounting Industry Challenges Section 4: Strategy and Outlook Questions Appendix Transforming the SME accounting market 3
Slide 4: Presenting today from Kelly+Partners
Presenting today from Kelly+Partners Brett Kelly Pauline Michelakis Chairman & CEO CFO Founded Kelly+Partners in 2006 CFO of Kelly+Partners since 2013 15+ years management experience 20+ years experience in senior financial roles in financial services 20+ years in the financial services industry and
Slide 5: Section 1: FY18 Results - Overview
Section 1: FY18 Results - Overview
Slide 6: FY18 Financial Highlights
FY18 Financial Highlights Growth in businesses has contributed to a strong FY • Kelly+Partners FY18 Profit Climbs 20%. • Strong growth in Underlying FY18 P&L metrics. • Underlying revenue is up 11% on prior year and 8% on Prospectus. • KPG has exceeded Prospectus forecasts for FY18. Consolidated Und
Slide 7: FY18 Revenue Growth
FY18 Revenue Growth Organic growth has driven strong revenue increase FY18 revenue increased by 11% on prior year, driven mainly by organic growth in established and growth businesses, as well as contributions from start-up businesses and new service lines (Finance, Corporate Advisory, Government an
Slide 8: FY18 Revenue Growth
FY18 Revenue Growth Organic growth has driven strong revenue increase Other Services Startups 4% 4% Organic No. of Stage of Business Revenue size Revenue Revenue businesses growth* Growth 19% Established >$2m 5 $29,052,985 7.8% Growth $1m to $2m 5 $7,648,503 14.8% Startups <$1m 4 $1,458,651 14.1% Ot
Slide 9: FY18 Prospectus Strategy Delivered
FY18 Prospectus Strategy Delivered ORGANIC NETWORK EXPANSION NEW SERVICES 1. 2. 3. 4. 5. ORGANIC ACQUISITION – ACQUISITION - GREENFIELDS NEW SERVICES GROWTH TUCK IN MARQUEE Wealth Management No new business No new business No new greenfield Providing wealth acquisitions were acquisitions were busine
Slide 10: Section 2: FY18 Results – Financial Information
Section 2: FY18 Results – Financial Information
Slide 11: FY18 Underlying Income Statement
FY18 Underlying Income Statement Group continues to drive growth in P&L Strong growth in the Underlying profit metrics in FY18 was driven by: • strong organic growth across the Kelly+Partners network; • addition of new complementary services (Finance, Corporate Advisory, Government, Investment Offic
Slide 12: FY18 Balance Sheet & Cash Flow
FY18 Balance Sheet & Cash Flow Balance sheet and cashflow remains strong • Equity attributable to KPGH shareholders has increased in FY18 by 27% • Net debt vs full year revenue gearing at 29%, significantly under bank approved maximum debt capacity of 60% (potential undrawn debt capacity of approx.
Slide 13: Dividends Per Share
Dividends Per Share Consistent quarterly dividend payments since listing • 4 x quarterly dividends at 1c per share each fully franked were declared and paid • The dividend payments are in line with the dividend policy Total dividends paid Amount per security Franked amount per Cents security Cents F
Slide 14: Section 3: Review of Accounting industry challenges and demands
Section 3: Review of Accounting industry challenges and demands
Slide 15: Global Tax Megatrends
Global Tax Megatrends Shrinking Tax Base Demographics Ongoing Government Budget Deficits Heightened Corporate Disclosure Tax Societal Pressure to Increase Payers Personal Taxes Competitive Pressure to Reduce Corporate Taxes Increasing Tax Complexity, Compliance and Collaboration Transforming the SME
Slide 16: Ageing Population in Australia
Ageing Population in Australia Transforming the SME accounting market 16
Slide 17: Challenges facing smaller accounting practices
Challenges facing smaller accounting practices Transforming the SME accounting market 17
Slide 18: Kelly+Partners is unique
Kelly+Partners is unique Capital smart approach Transforming the SME accounting market 18
Slide 19: Section 4: Strategy and Outlook
Section 4: Strategy and Outlook
Slide 20: Acquisitions since June 2018
Acquisitions since 30 June 2018 Since 30 June 2018, Kelly+Partners have made two acquisitions as announced to the ASX: 1. 16 August 2018 – accounting firm acquired in the Inner West of Sydney with structure following the standard KPG 51% Owner-Driver Model. The business will commence trading as Kell
Slide 21: Strategic Priorities for FY19
Strategic Priorities for FY19 Strategic Initiative Plans • promote new partners • attract talented new team members 1 People • client management training across all offices • business manager training across all offices 2 Process • IT system implementation and roll out • implement “Experience of the
Slide 22: FY19 Growth Plan
FY19 Growth Plan ORGANIC NETWORK EXPANSION NEW SERVICES TOTAL 1. 2. 3. 4. 5. ORGANIC ACQUISITION – ACQUISITION - GREENFIELDS NEW SERVICES GROWTH TUCK IN MARQUEE Wealth Management Target top line Actively focus on Actively seek Actively seek organic growth of tuck-in acquisition opportunities to Fina
Slide 23: Targeted locations – 2019/2021
Targeted locations – 2019/2021 NSW VIC Transforming the SME accounting market 23
Slide 24: Key Dates
Key Dates —— FY18 Financial Results 27 August 2018 Q1 Dividend 16 November 2018 Annual General Meeting 29 November 2018 1H19 Financial Results 28 February 2019 Q2 Dividend 16 February 2019 Q3 Dividend 16 May 2019 Q4 Dividend 16 July 2019 Transforming the SME accounting market 24
Slide 25: Questions?
Questions? KELLY + PARTNERS
Slide 26: Appendix
Appendix KELLY + PARTNERS
Slide 27: Reconciliations of underlying EBITDA and NPATA
Reconciliations of underlying EBITDA and NPATA Reconciliation of consolidated EBITDA ($m) FY18 Underlying Reported consolidated EBITDA 13.5 Non-recurring expenses: add Restructuring costs 0.5 Shares issued to employees under ESS 0.2 Final costs relating to IPO 0.1 Other 0.2 less Change in fair value
Slide 28: Owner Driver Business Structure
Owner Driver Business Structure OWNERSHIP / ASSETS FINANCIAL RETURN / DEBT + Capital + Distribution: Equity Interest + Back Office KPG + Fees: Centralised management + IP services + Fees: Intellectual Property 100% Subsidiary Company 51% + Fixed Assets + Debt: Acquisition + Employees Operating Busin
Slide 29: Disclaimer
Disclaimer —— SUMMARY INFORMATION This document has been prepared by Kelly Partners Group Holdings Limited ACN FORWARD LOOKING STATEMENTS 124 908 363 (Company). This document contains information in a summary form This document contains certain “forward-looking” statements. Forward-looking and gener
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