Prime Financial positioned for strong growth in FY24
With an ambitious $100 million revenue target by 2030 on the horizon, Prime Financial has released its projected results for the 2024 financial year driven by organic growth.
Announced in the financial services firm’s 2023 annual general meeting, it expects to generate a revenue of 15–20 per cent in FY24.
Prime also projected an EBITDA of 10–15 per cent as well as dividends of 5–10 per cent during this financial year.
“The prevailing message for this year’s annual address is one of continued strong growth, a track record of delivering value and much optimism about our future growth prospects,” said Simon Madder, Prime chairman and managing director.
In August, the firm reported 28 per cent revenue growth in the last financial year, of which 19 per cent was organic and the rest came from an acquisition of SMSF administrator Intello in October 2022.
Its underlying EBITDA was $8.6 million, up 11 per cent on FY22.
“We’re now starting to deliver some fantastic results consistently, we’re moving into acceleration mode,” he said at the time.
Madder has again emphasised the firm’s strong growth ambitions to expand from $33.7 million revenue in FY23 to $50 million in FY25, then doubling that figure to $100 million by 2030.
This will be achieved through strong organic growth in its four different service lines, namely wealth management, capital and corporate advisory, accounting and business advisory, and SMSFs.
Moreover, the firm intends to capitalise on future growth opportunities and invest in its team and infrastructure to support efficiencies.
“Whilst I don’t want to make comments on specific transactions, by the acquisition of Intello in October 2022 it should be apparent that Prime will be actively seeking and undertaking complementary acquisitions,” the chairman hinted.
“We are confident that our culture, financial strength and operating model supported by high levels of recurring revenue positions us well.”
Madder also previously shared his expectations on expanding the firm’s staff.
“Having a great team that can deliver on opportunities is the number one thing I’m excited for. I wouldn’t be surprised to see, in the next two to three years, staff numbers increase by 50–100 per cent,” he stated in August.
Currently, some 45 per cent of the company is owned by the team, which is projected to increase to 48 per cent as more staff reach the equity level.
“In November of this year, another 40 team members will become shareholders in the business.”
AUTHOR
Jasmine Siljic
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
