Prime Financial Group Limited · ASX:PFG
Prime Financial — ShareCafe Webinar (October 2022)
19 slides from Prime Financial's conference presentation, Oct 7, 2022
Slide 1: ShareCafe Presentation
Prime Financial Group Ltd (ASX:PFG) ShareCafe Presentation Simon Madder – Managing Director & CEO simonm@primefinancial.com.au 07 October 2022
Slide 2: Highlights
2022 +15% to +18% to +14% to Highlights $7.8m $26.3m 1.93 cps Financial Performance Underlying EBITDA* Growth Revenue Growth Reported Earnings PFG’s (Prime) 2022 full year report Per Share (EPS) summarises our activities and performance for the financial year ended 30 June 2022. It provides a snapsh
Slide 3: Other Important Information
Other Important Information Team has grown by Organic and inorganic Full year dividends Share buyback ongoing 30%+ (flexible operating initiatives are increased by 57% in – 5m shares purchased structure) plus accelerating as part of FY22 – forecast to and approximately Melbourne office space Prime’s
Slide 4: Prime's 5 year Performance
Prime’s 5 year Performance • Positive momentum across all metrics 2022 2021 2020 2019 2018 Underlying EBITDA to members/shareholders ($,000’s)* 7,770 6,778 5,533 4,099 3,772 Reported Profit/(loss) after tax attributable to members/shareholders ($,000’s) 3,814 3,074 2,132 1,315 (1,135) Basic earnings
Slide 5: Who we are
Who we are Purpose Our Operations BRISBANE Empowering you to achieve your Advisory & Capital Group with 130+ aspirations. team members primarily across Melbourne, Sydney and Brisbane. SYDNEY Our Services Continued focus on growing Melbourne, Integrated Accounting & Business Sydney and Brisbane for a
Slide 6: How we are growing
How we are growing ‘Our goal is to double group revenue over three years to $50 million (FY22: $26 million) through organic and inorganic activity’ 01. 02. 03. 04. Organically (Across all 4 New Revenue New Service Lines Acquisitions (Like Intello - Service Lines - New Contributors (Develop New Servi
Slide 7: Recent Announcements: October 2022 Prime acquires 100% of Intello
Recent Announcements: Key transaction details October 2022 • Revenue of approximately $3.0 million per annum • Full year EBITDA contribution of $900,000 + (once fully integrated) Prime acquires 100% of Intello • Highly EPS accretive transaction providing strong earnings growth in FY23 and beyond • P
Slide 8: Recent Announcements: Completion of new Acquisition Facility
Recent Announcements: On 4 October 2022 October 2022 • Prime agreed a new $10.0 million financing facility with Westpac Banking Corporation (Westpac) Completion of new • The facility is to be used for future acquisitions, the first of which was Intello (announced on 4 October 2022 for $4.6 million)
Slide 9: Capital Structure & Comparison
Capital Prime’s Capital Structure & Investment Information Market Capitalisation at 20.0 cents at closing on 03 October 2022 $40.7m Structure & Net debt at 30 June 2022 $5.2m Share Price* 20.0 cents Comparison Reported EPS* 1.93 cps Reported EPS Multiple 10 times Full Year (Interim + Final) Dividend
Slide 10: Key Financial Information
Key Financial Financial Highlights* Prime – Members/Shareholders Information FY22 FY21 Change Underlying FY22 vs FY21 Revenue – Contracts with Customers $26.2m $22.3m 18% Prime’s key profitability measure is Underlying EBITDA for members/ EBITDA** $7.8m $6.8m 15% shareholders. This removes the impac
Slide 11: Revenue Growth & Service Lines
Analysis of Revenue Growth (Contracts with Customers) by Year Revenue Growth +18% FY21 Key & Service Lines Financial +4% $M Total Revenue % Revenue Growth +4% Highlights $26.2M • 80%+ of total revenue is generated from $20.7M existing customers on a recurring basis FY19 FY20 FY21 FY22 FY22 Revenue
Slide 12: Expenses & EBITDA
Expenses Total Expenses by Year & EBITDA FY19 $19.3M $M Total Expenses % Total Expenses Change • Excluding the $0.5m loss on FY20 $18.0M -6% derecognition of the ROU Asset (a result of the one-off, non-cash, FY21 $17.5M -3% accounting treatment due to Melbourne office sublease), total expenses incre
Slide 13: Margin, Cashflow & Net Debt
Margin, Analysis of Operating Margin by Year % Operating Margin Cashflow & 19% 26% 30% 30% Net Debt FY19* FY20 FY21 FY22 Net Debt by Year Improvement +4% -28% $M Net Debt -26% $9.4M $9.8M % Net Debt Reduction $7.1M $5.2M 30 June 19 30 June 20 30 June 21 30 June 22 Net Debt to Underlying 1.8X 1.8X 1
Slide 14: Dividends
Dividends • Target dividend payout ratio of 40 – 60% of reported and maintainable earnings • FY22 final dividend declared of 0.60 cps (fully franked) vs final dividend of 0.40 cps in FY21 (+50%) Analysis of Dividends by Half (1.50) • Excluding the (Loss on derecognition of Cents per share ROU Asse
Slide 15: Balance Sheet, Cashflows & Net Debt
Balance Sheet, Balance Sheet ($M) Group At 30 June 2022 At 30 June 2021 Cashflows & Cash 0.1 0.1 Net Debt Total assets Borrowings 59.8 (5.4) 58.3 (7.2) Total liabilities (13.1) (14.6) • Net debt reduction to $5.2m (-26%) from Net assets 46.6 43.7 $7.1m at 30 June 2021 Non-controlling interests 0.6
Slide 16: Outlook – FY23
Outlook – FY23 Increased Earnings & Actively exploring Growth Increased Dividends - from 1.10cps Revenue Growth Opportunities (FY22) to 1.50cps (FY23) +36% • Revenue Growth 15%+ • Organic and inorganic initiatives Forecast: • Growth in Underlying EBITDA 5% to are accelerating as part of • Interim Di
Slide 17: Contact
Contact Simon Madder CEO, Managing Director & Chairman Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au W www.primefinancial.com.au Ben Priestley Head of Finance & Investor Relations Prime Financial Group Ltd T (03) 9827 6999 E benp@primefinancial.com.au W www.primefinancial
Slide 18: PRIMEFINANCIAL.COM.AU
@® PRIMEFINANCIAL.COM.AU # PRIMEFINANCIALGROUP in PRIMEFINANCIALGROUP
Slide 19: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited Disclaimer (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and concl
Prime Financial Group — ShareCafe Webinar (October 2022) on 6ix