SHAREHOLDER ANNOUNCEMENT: Confirmation of Release PFG AGM Chairman’s Address and MD/CEO Presentation


Chairman’s Address

Good morning Ladies and Gentlemen. On behalf of my fellow directors, Mr Simon Madder, Mr Peter Madder, and Mr Tim Carroll, it gives me great pleasure to welcome you to the 2016 Annual General Meeting of Prime Financial Group Limited. My name is Paul Cowan, and I have the honour of being your Chairman.

I would also like to take the opportunity to welcome the members of our team who are in attendance this morning, as well as Mr. Jeffrey Luckins and Ms. Corrine Siddles from our auditors, William Buck, and Mr. Aaron Jordan from our legal advisers, Holman Fenwick Willan.

The agenda for this meeting will comprise of my address, followed by our Managing Director/CEO, Mr Simon Madder’s presentation on the business and the results for the 2016 financial year. Simon will also provide some guidance for the current financial year. I would also like to welcome representatives of Computershare who will be counting votes on resolutions to be considered this morning.

The formal business of the meeting will then be conducted which will include the adoption of the 2016 Annual Financial Statements and the Remuneration Report, followed by the re-election of both Mr. Tim Carroll and Mr. Peter Madder as directors of the Company. We have also allowed time for questions on the business of Prime.

On behalf of the Directors and shareholders, I would like to thank our CEO Simon Madder for his dedication and leadership, our management team and staff for their passion and commitment, and also to our growing number of partner firms for embracing the opportunity to join us on our journey.

I would also like to acknowledge and thank my fellow Directors for their valuable contribution during the past 12 months, and in particular Mr. Peter Madder who agreed to take on the added responsibility of interim Chairman after last year’s Annual General Meeting, and thereby affording me both the time and opportunity to more fully appreciate the breadth of Prime’s operations prior to taking on the role as Chair a few weeks ago.

Additionally, I wish to welcome our Director Tim Carroll to his first Prime AGM. As shareholders will be aware, Tim has been globally acclaimed for his expertise in digital media and marketing, and we congratulate Tim on recent successes with BUCKiTDREAM. We are most fortunate to be able to call on Tim’s expertise A member of Prime Financial Group Ltd as we progress to expand our reach through our partner networks, and our brand to the broader investment community.

The 2016 financial year was one of consolidation for Prime, with profit before tax attributable to members of the parent entity being $3.94 million compared to an underlying profit (excluding impairment charges) of $3.76 million in the 2015 financial year, an improvement of 5%. On an after tax basis, the comparative increment was 20%, with underlying earnings per share increasing by 19%.

Group revenues increased by 9% reflecting the increased scale of the business.

The Board resolved to declare a fully franked final dividend of 0.4 cents per ordinary share, bringing the total dividends declared in respect of the 12 months to 30 June 2016 to 0.8 cents per ordinary share. This compares to total dividends declared in the prior twelve month period of 0.8 cents per ordinary share.

Simon will elaborate further on the results for the year during his presentation.

During the year, Prime continued to successfully implement its 3 tier service offering (Self Directed, Collaborative and Full Advice) which provides our clients choice as to the level of services they require, and the flexibility to adjust as their circumstances change over time. By providing increased choice, an enhanced technology platform, and access to a range of accounting and wealth management services from a single location, we aim to provide a high quality and seamless experience for our clients, and an improved efficiency and product capability of our partner firms.

Key outcomes achieved during the financial year included;

  • Increased adoption of Prime’s Separately Managed Account service, which grew from $19 million to $96 million at 30 June 2016. The SMA platform was also expanded to include an International Equities offering;
  • The acquisition of strategic stakes in the MPR and Watermans accounting businesses. Since year end, Prime has further increased its holding in MPR Group to 93%, and has assisted MPR in fully and successfully absorbing the Watermans business;
  • The completion of its restructuring programme, which resulted in the transfer of two of its investments in partner firms to its jointly owned subsidiary, Prime Wealth Management Pty Ltd, and a consequential reduction in bank debt by some $3.6 million; and
  • The development of enhanced communication campaigns (both digital and direct) which have generated higher levels of engagement with clients of our partner firms.

Looking forward, the Board is committed to establishing the Prime brand as the as the leading integrated advice firm for complete Accounting, Wealth Management and Capital Solutions.

In moving to a majority position in MPR, Prime has access to a first class leader in Matt Murphy, who with his team has developed a range of client focused services (including funding grants for export and innovation) which can be introduced to our 35 partner firms. We are delighted with MPR’s progress, and its prospects for the future.

Likewise, we will continue to invest in communication and technology solutions which will over time provide increased efficiencies and enhanced access to both Prime’s existing client network and the broader community. We are confident this will lead to a consequential increase in the level of products and services delivered across this platform.

In closing, I would like to thank our shareholders for their continued support of Prime during the year and in particular those shareholders who have been able to attend today’s meeting.

I can assure you that the Board and Management are working hard to realise Prime’s potential to grow our business and service offerings in the Accounting and Wealth Management sector, and to see these efforts recognized by way of an increase in earnings per share and a growing dividend payment to shareholders.

Paul Cowan

To View MD/CEO Presentation please click HERE


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