Slide 1: Full Year Results
For personal use only Full Year Results 20 August 2014 Barry Lambert - Executive Chairman Michael Spurr - Managing Director & CEO
Slide 2: Full Year Result Highlights
Full Year Result Highlights For personal use only Financials Operating Result (EBITA): $19.12 million (up 0.5%) 2 3 Net Profit before Tax: $15.25 million (up 1.8%) Net Profit after Tax: $10.90 million (down 1.7%) Net Profit after Tax attributable to shareholders: $11.13 million CUP Dividends 12 cent
Slide 3: Fully Franked Dividend Declared
Fully Franked Dividend Declared Dividend Declared Cents Per Ex-Dividend Record Payment For personal use only Share Date Date Date 2015 1st Interim Dividend 2 cents 27/10/2014 29/10/14 17/11/14 Recent CUP Dividends Dividends Paid Cents Per Share Paid 2013 Final Dividend 3 cents 15/08/2013 2014 1st In
Slide 4: The Countplus Network
The Countplus Network For personal use only 4
Slide 5: Group Performance – Member Firms
Group Performance – Member Firms 2014 2012 2014 2012 % % Change Change Excluding sale of For personal use only $ ‘000 $ ‘000 % % of ofTotal business, accounting Revenue Total revenues increased Revenue by 4% Total Net Member Revenue 90,242 100% 11.28% Financial planning Income: normalised income Exp
Slide 6: Group Performance – Member Firms
Group Performance – Member Firms 2014 2012 2014 2012 % % Change Change Other Operating For personal use only $ ‘000 $ ‘000 % % of ofTotal expenses impacted Revenue Total by increased Revenue provisioning under conservative policy Total Net Member Revenue 90,242 100% 11.28% Expenses: Expenses: Share
Slide 7: Group Performance – Member Firms
Group Performance – Member Firms 2014 % Change 2012 2012 2012 2012 201220122012 %% % Change % Change Interest expense For personal use only $ ‘000 $‘000 ‘000$ ‘000 %%ofof$ ‘000 % Change Change of primarily relates to Total Total Total debt facility with Other Items: Reven RevenuRevenue CBA Non-Oper
Slide 8: Balance Sheet
Balance Sheet For personal use only 2014 % $ ‘000 Change Current Assets 34,334 (2.4%) Non-Current Assets 65,427 (1.5%) SBS (Brisbane, QLD) Total Assets 99,761 (1.8%) Current Liabilities 21,321 (3.6%) Net debt has increased due to Non-Current Liabilities 27,695 0.7% new acquisitions Total Liabilities
Slide 9: Recent Acquisitions / Investments
Recent Acquisitions / Investments Date Acquirer Acquisition / “Tuck-In” For personal use only Jul 2013 360 Financial Advantage Acquired a Port Macquarie, NSW accounting firm for $1.0 Pty Ltd (Coffs Harbour, million. NSW) Jul 2013 360 Financial Advantage A small Port Macquarie, NSW accounting sole pr
Slide 10: Recent Acquisitions / Investments
Recent Acquisitions / Investments Date Acquirer Acquisition / “Tuck-In” For personal use only May 2014 Total Financial Solutions Book of financial planning fees from Sydney based adviser group (national) firm, Active & Ethical Solutions Pty Ltd for $0.5 million. Jul 2014 Total Financial Solutions 40
Slide 11: Benefits of Joining Countplus
Benefits of Joining Countplus What are the benefits to accountants and other financial For personal use only services businesses for being a part of the Countplus network? Learning from Member Firms & gaining cross referrals; cash buyer &/or diversification and growing business value at a listed m
Slide 12: Total Financial Solutions
Total Financial Solutions TFS, a national financial planning dealer group was fully acquired on 30 For personal use only September 2010 TFS are expecting strong growth in EPS in 2015 as a result of recent adviser signings and improved market conditions TFS Earnings Per Share 17 16 15 EPS (cents)
Slide 13: Pacific East Coast Pty Limited
Pacific East Coast Pty Limited Acquired on 11 February 2012 For personal use only Core business unit is property research and broking services on new residential property developments Has grown strongly since acquisition PEC Earnings per Share 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - FY12 FY13
Slide 14: Super IP / Class Super
Super IP / Class Super First investment in Class made in October 2013 For personal use only Class is expected to list on the ASX in 2015/16 The number of billable funds will pass 60,000 this week – up more than 10% in 8 weeks 14
Slide 15: Growth Acquisition Strategy
Growth Acquisition Strategy Organic growth is our priority – steady demand from Vendors For personal use only Funding of acquisitions will predominately be funded from profits & borrowings Acquisitions & investments will continue at 2 levels: - Initial minority stake (30%) in stand-alone busin
Slide 16: Hood Sweeney
Hood Sweeney Hood Sweeney is a South Australian professional services firm with For personal use only more than 110 employees CUP’s first investment in Hood Sweeney made in October 2012 and currently have a 23% interest Hood Sweeney Earnings Per Share 0.1000 0.0944 0.0900 0.0800 0.0700 0.0600 0.
Slide 17: “C+2” – Benefit for Vendor Accounting Firms
“C+2” – Benefit for Vendor Accounting Firms Funding to: pay out retiring Principals; make acquisitions; or diversify For personal use only Principal’s investment Learning from like minded professionals in the Countplus network Model of the future – Principals retain direct financial interest a
Slide 18: “C+2” – Benefit to CUP
“C+2” – Benefit to CUP Risk Mitigation – part ownership reduces risk on large investments For personal use only Increased growth via “C+2” three stake structure: - Direct ownership & management via Accounting Principals (40%) - Share of listed company ownership via proposed ASX listing (30%) - C
Slide 19: Direct Equity Plan
Direct Equity Plan CUP to offer principals and key employees opportunity to purchase For personal use only equity in underlying businesses Vendor principals may effectively “buy back” part interest Also targeting future leaders/principals CUP will maintain control Unique offering 19
Slide 20: Dividend Policy
Dividend Policy Quarterly dividends reduced to 2 cents per quarter – 8 cents per annum For personal use only for the foreseeable future To assist funding of growth and investment opportunities without excessive debt or issue of new capital 20
Slide 21: Outlook
Outlook For personal use only First guidance to be reported at Annual General Meeting in November The MBA Partnership (Southport, QLD) Evolution Advisers (Warners Bay, NSW) 21
Slide 22: Full Year Results
For personal use only Full Year Results 20 August 2014 Barry Lambert - Executive Chairman Michael Spurr - Managing Director & CEO