Prime Financial targets highest growth in 25-year history
Prime Financial reported a “tremendous” 38 per cent revenue growth in its wealth management division for 1H24, as it strives towards its $100 million revenue target by FY30.
Announcing its half-yearly results for the 2024 financial year, the advisory, capital and asset management group saw an overall revenue increase of 14 per cent to $18.2 million from $16 million in the previous period.
This result was driven by Prime’s wealth management division which saw 38 per cent revenue growth compared to 1H23. Prime expects this growth trajectory to continue in the financial year’s second half.
Its capital and corporate advisory division saw the next highest growth at 12 per cent, despite difficult conditions across equity capital markets.
The firm confirmed it is “well placed” to deliver a 15–20 per cent revenue growth for FY24, which it first signalled in December.
Prime also recorded an underlying EBITDA of $3.8 million, a minor rise of 2 per cent from $3.7 million in the previous period. The firm attributed this due to new service offerings which are scaling but not yet profitable.
Its reported EBITDA was down 53 per cent from $3.5 million to $1.7 million, “predominantly due to a number of one-off costs related to investment in growth via new service offerings and acquisitions plus restructuring and repositioning”.
“Our half-year results have delivered solid top-line growth, driven by a robust performance in wealth management,” remarked Simon Madder, Prime managing director and chairman.
“Over the period, we continued to invest in the business, further bolstering our newer service offerings, which include consulting, debt capital advisory, property and the expansion of our wholesale wealth management offering and international capability. This has been the most substantial investment we have made in our new services in the last five years.”
The firm is currently targeting its highest growth in its 25-year history, through a combination of new services and acquisitions, as it seeks to double its revenue from $26 million in FY22 to $50 million in FY25 – which it hopes to double even further.
The MD continued: “We are very confident in our ability to execute on our strategy and deliver on our ambition to be the leading integrated advice, capital and asset management group of the future with $100 million in revenue between FY28 to FY30.
“As part of this strategy, we have clearly defined target markets, with a greater focus on two key segments – ‘emerging businesses’ and ‘wealth clients’. We are confident in our ability to win these clients, to service these clients with our expanding capability, and retain these clients.”
Prime remains focused on driving scale both organically through its four service lines and through external acquisitions.
Most recently, the firm announced it will acquire fund management platform Altor Capital as it seeks to launch a diversified alternative asset management business.
Madder said the acquisition will allow Prime to launch new products in the “burgeoning” alternative asset management space and deliver additional value in the firm’s network.
AUTHOR
Jasmine Siljic
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
