Prime Financial Group Limited · ASX:PFG
Prime Financial — FY2014 Earnings Presentation
18 slides from Prime Financial's earnings presentation, Aug 28, 2014
Slide 1: Full Year Results Presentation
Full Year Results Presentation For personal use only 28 August 2014 Integrated Wealth Management Helping Clients Protect Assets and Build Wealth
Slide 2: Prime Financial Group Ltd – Positioning & Opportunity
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • What is the Clients opportunity for • Estimated that only 20% - 40% of Australians receive Prime? Financial Advice. Superannuation asset pools continue to grow and Australians are increasingly becoming more engaged in thei
Slide 3: Positioning & Opportunity: How does Prime grow?
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • How does • More consistently implement Prime’s Wealth Management Prime grow? Client Engagement Model with Accounting Firms (More New Leads & New Client Appointments) • Increase Funds Under Management (FUM) • Deliver more s
Slide 4: Positioning & Opportunity: Why are we successful?
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • Why are we • Key roadmap to Growth (Organic & Acquisition) successful and • Clear focus on what our ideal Clients and Partners look why will we like and, increasingly how to access them become more successful? • Access to
Slide 5: Structure Chart
Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting and SMSF Services Up to 50% Equity $1B+ FUM and over 4,000 clients 30+ Wealth Management Direct Entities jointly owned 10 Accounting/SMSF (100% Equity) with Accounting Firms Firms (50% Equity) Access to 40,0
Slide 6: FY2014 Results Summary
FY2014 Results Summary For personal use only FY2014 • EBIT DOWN 1% to $3.72M compared to FY2013; • NPAT DOWN 6% to $2.63M compared to FY2013; • EPS DOWN 5% to 1.8 CPS; • Full Year Dividend UP 7% to 0.80 CPS (54% payout ratio) from 0.75 CPS; • Overheads DOWN 15% (excluding interest) on FY2013; • New
Slide 7: FY2014 Results Summary by Segment
FY2014 Results Summary For personal use only FY2014 – Wealth Management (WM) • 85% of Revenue; • Revenue DOWN 14% (including CEM Licensing Fees) compared to FY2013; and • Revenue DOWN 7% (excluding CEM Licensing Fees) FY2014 – Accounting & SMSF Services (AS) • 15% of Revenue; and • Revenue UP 8% com
Slide 8: Key Developments - Operational & Investment Focus FY2014
Key Developments - Operational & Investment Focus FY2014 For personal use only FY2014 • Reduce the Cost Base – 15% drop and $1.3M benefit flowed through in FY2014; • Building the pipeline and recruiting new Accounting Firm Wealth Management JV Partners for Prime’s Client Engagement Model; • Commenci
Slide 9: Summary Full Year Results
Summary Full Year Results For personal use only Financial FY14 FY13 % Change Earnings Before Interest & Tax (EBIT) ($M) 3.72 3.74 -1% Net Profit After Tax (NPAT) ($M) 2.63 2.78 -6% Basic & Diluted Earnings (cents per share) 1.8 1.9 -5% Dividend Paid & Proposed (cents per share) 0.80 0.75 +7% (fully
Slide 10: Summary Profit & Loss
Summary Profit & Loss For personal use only % Change FY14 1H14 2H14 FY13 FY14 v FY13 Wealth Management – New Business Revenue ($M) 2.27 1.34 0.93 3.10 -27% Wealth Management – Recurring Revenue ($M) 7.63 3.84 3.79 7.51 +2% Wealth Management – Licensing Revenue ($M) 0.50 0.20 0.30 1.52 -67% Total Wea
Slide 11: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 85% of Prime’s Revenue % Change New Business Revenue FY14 1H14 2H14 FY13 FY14 v FY13 Investment Brokerage ($’000) 1,419 815 604 1,954 -27% New Issues & IPO’s ($’000) 345 230 115 511 -32% Asset Prot
Slide 12: Wealth Management Licensing Revenue
Wealth Management Revenue For personal use only Wealth Management Licensing Revenue % Change FY14 1H14 2H14 FY13 FY14 v FY13 Licensing Revenue ($’000) 500 200 300 1,520 -67% Total ($’000) 500 200 300 1,520 -67% Commentary As expected licensing revenue was weighted more significantly to 2H2014 but lo
Slide 13: Key Metrics – New Business Leads
Key Metrics – New Business Leads For personal use only New Business Leads • Prime’s Client Engagement Model (CEM) drives the growth in new leads New Leads (Monthly Average) for Prime’s Wealth Management 70 57 60 Services. This is driven by: 60 47 52 FY10 50 • New Client leads 40 31 FY11 30 FY12 • Ad
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) Commentary 1H14 2H14 Total • Opening FUM ($M) 1,098 1,077 1,098 • FUM decreased by ($40.0M) substantially because of • FUM - New ($M) 38.8 45.6 84.4 Outflow’s related to the • FUM - Outflow ($M) (117.1) (
Slide 15: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees For personal use only Accounting and SMSF Services Revenue Prime’s now 10 (up from 9) Accounting and SMSF Investees represent 15% of Prime’s Revenue % Change FY13 FY14 FY13 v FY14 Accounting and SMSF Revenue ($M) 1.69 1.83 +8% Total 1.69 1.83 +8% Note - Prime’s
Slide 16: Summary Balance Sheet
Summary Balance Sheet For personal use only 30/06/13 30/06/14 Current Assets Cash 0.7 0.3 Other current assets 3.8 4.4 Non Current Assets Receivables 5.4 4.0 Plant & Equipment 1.3 1.1 Investments 61.9 62.4 Total Assets 73.1 72.2 Current Liabilities Payables/Provisions 2.3 2.9 Non Current Liabilities
Slide 17: FY2015 Focus
FY2015 Focus For personal use only FY2015 The plan for FY2015 is to; • Build Prime’s presence by communicating the difference and distinct value Prime offers clients’ in all key markets. • Provide clients with an increasingly diversified advisory offering across asset classes. • Recruit: • New Accou
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