Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (February 2022)
20 slides from Prime Financial's investor presentation, Feb 18, 2022
Slide 1: Half year 2022 (H1 FY22) Results Presentation
Prime Financial Group Ltd (ASX:PFG) Half year 2022 (‘H1 FY22’) Results Presentation 18 February 2022
Slide 2: H1 FY22 Key Financial Highlights
H1 FY22 Key Financial Highlights Underlying EBITDA Growth Revenue Growth Reported Earnings Interim dividend up (members/shareholders) per Share (EPS) +20% +14% +14% +67% to $3.4m to $12.2m to 0.66cps to 0.50cps Margin Growth Increase in net Reduction in (members/shareholders) operating cash flow Net
Slide 3: Other Important Information
Other Important Information Melbourne sublease update: Melbourne office footprint reduced (December 2021) accommodating a balanced office and work from home environment and improving future annual cash flow: ● Annual cash flow to improve by $300k+ ● Subletting unneeded office space created an unfavo
Slide 4: Who We Are
BRISBANE • Accounting & Business Advisory Who We Are • Wealth Management & Protection • SMSF • Capital & Corporate Advisory Service Integrated Accounting & Business Advisory, Wealth Management, SMSF and Capital Services with over $1.1 billion of client funds under management (FUM). SYDNEY • Accounti
Slide 5: Capital Structure & Comparisons
Capital Structure & Comparisons Prime’s Capital Structure & Investment Information Top 20 Shareholders Market Capitalisation at 18.0 cents at closing on 11 February 2022* $36.3m Net debt at 31 December 2021 $6.3m Share Price* 18.0cents Reported EPS** 1.73cps 68% Reported EPS Multiple** 10 times An
Slide 6: Key Financial Information
Key Financial Information H1 FY22 vs H1 FY21 Prime’s key profitability measure is Underlying EBITDA for Financial Highlights* Prime - Group members/shareholders Prime - Members/Shareholders Underlying EBITDA (members/shareholders) H1 FY22 H1 FY21 Change H1 FY22 H1 FY21 Change removes the impact of
Slide 7: Revenue & Segment Services
Revenue & Segment Services ● Prime operates a direct client advice model under the Prime brand (81% of revenue) and a Wealth Management Joint Venture model with Accounting Firms (co-branded) (19% of revenue) ● 80%+ of total revenue is generated from existing customers on a recurring basis ● Reven
Slide 8: Expenses & EBITDA
Expenses & EBITDA Key Takeaways Total Expenses by Period • Excluding the $0.5 million expense that relates to the one-off non-cash accounting treatment of the Lease Modification (a result of Melbourne H1 FY19 9.5 office sublease), total expenses increased by $0.5m of the $10.3m total 10% to accelera
Slide 9: Margin, Cash Flow & Net Debt Improvement
Margin, Cash Flow & Net Debt Improvement Operating Margin by Period Net Operating Cash Flow by Period H1 FY19 $1.6m 27% 28% H1 FY20 $1.4m -11% 22% 19% H1 FY21 $2.7m +95% H1 FY19* H1 FY20 H1 FY21 H1 FY22 H1 FY22 $2.8m +2% % Operating Margin $m Net Operating Cashflow % Net Operating Cashflow growth
Slide 10: Dividends
Dividends Key Dates for Dividend and DRP ● Target dividend payout ratio of 40 – 60% of reported and maintainable earnings Dividend ● H1 FY22 interim dividend declared of 0.50 cents per share (‘cps’) (fully franked) vs interim dividend of Record Date 7 March 2022 0.30 cps in H1 FY21 (+67%) Payment
Slide 11: Balance Sheet, Cash Flows & Net Debt
Balance Sheet, Cash Flows & Net Debt Balance Sheet Key Takeaways Group At 31 December 2021 $m At 30 June 2021 $m ● Net debt reduction to $6.3m (-11%) from $7.1m at 30 June 2021 Cash 0.1 0.1 Total assets 57.7 58.3 ● Net operating cash flow of $2.8 million Borrowings (6.5) (7.2) ● Investing cash out
Slide 12: Clients and the Community
Clients and the Community Accounting & Business Advisory NPS Clients 2019 2021 ● In calendar year 2021, Prime’s Net Promoter Score (NPS) improved by 34%, a top quartile performance when measured against the 2019 survey. ✔ Accounting & Business Advisory +54 (an improvement of 15) ✔ Wealth Managemen
Slide 13: Strategic Plan
Strategic Plan ‘OneConnected’ Professional Area & Objectives FY22 Key priorities services firm Purpose Financial Growth Empowering you to achieve your aspirations Grow Underlying EBITDA (members/shareholders) whilst • Continue to integrate Prime’s client base - improving dividends and scaling the fi
Slide 14: Outlook for Members/Shareholders – FY22
Outlook for Members/ Shareholders – FY22 Increased Earnings Actively exploring Growth Increased dividends - Forecast to & Revenue Growth Opportunities increase from 0.70cps (FY21) to 1.10cps (FY22) +57% ● Growth in Underlying EBITDA ● Organic and Inorganic Initiatives are ● Confirm Interim Dividend
Slide 15: Outlook for Members/Shareholders – FY22
Outlook for Members/ Shareholders – FY22 Debt to Underlying EBITDA (members/ Capital Management Other Items shareholders) to decrease initiatives ● Melbourne office footprint reduced (December) accommodating a ● Target range 0.5 to 1.0 times ● Buyback commenced on balanced office and work from home
Slide 16: Appendices
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Slide 17: EBITDA & NPAT
EBITDA & NPAT Attributable to members/shareholders reconciliation $’000 AUD H1 FY22 H1 FY21 Reported net profit after tax from operations (Group) 1,536 1,312 Add: Tax expense 354 463 Add: Interest expense/(income) 164 222 EBIT (Group)* 2,055 1,998 Add: Depreciation 21 31 Add: Amortisation 817 880 Re
Slide 18: Board
Board Simon Madder Tim Bennett Chief Executive Officer, Managing Director & Executive Director (effective 3 July 2020) & Chairman Managing Director – Capital • Co-founder, Managing Director & CEO of Prime • Established the Capital & Corporate Advisory Financial Group Ltd (Prime) since 1998 division.
Slide 19: Contact
Contact Simon Madder Rory McLaughlin Chief Executive Officer, Managing Group Financial Controller & Company Secretary Director & Chairman Prime Financial Group Ltd Prime Financial Group Ltd T (03) 9827 6999 T (03) 9827 6999 E rorym@primefinancial.com.au E simonm@primefinancial.com.au W www.primefina
Slide 20: Disclaimer
Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited (‘Prime’). Disclaimer No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or Summary Information correctness of the information, opinions and con
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