Q4 2026 Prime Financial Group Ltd Earnings Call

August 26, 2026

Speaker #1: And welcome to Prime Financial Group Limited's FY26 financial results. My name is Natalie Simmons, the Chief Operating Officer of Prime, and I'm joined today by Prime's Managing Director and Chairman, Simon Madder, and Chief Financial Officer Sharon Papworth.

Speaker #1: Before I hand over to Simon and Sharon for the formal presentation, I just wanted to remind everybody that this webinar is being recorded, and there will be opportunities for Q&A at the end of the formal presentation.

Speaker #1: If you would like to submit some questions, you can do so via the Q&A tab at the bottom of your screen. And I would like now to hand over to Simon.

Speaker #2: Right, thanks for that. Much appreciated. Welcome, everyone. A really pleasing set of results, again, for FY26. Another significant step in our growth trajectory. I look forward to running you through all the key financial metrics and what's happening operationally.

Speaker #2: So I'm going to jump onto the first slide, if we can, please now. So, a few of you won't be necessarily aware as to what we do, but I think the best way to describe our business is as a market-leading integrated device and investment firm.

Speaker #2: Intentionally for ambitious clients. A lot of our clients operate their own business, or they have a particular wealth management need, and I think where we do our best work is when we combine those two things together.

Speaker #2: Through our One Business, which is our One Connected Prime philosophy. We currently have about 1.9 billion dollars of funds under management, 197 fantastic team members, and we have been in business for 28 years.

Speaker #2: Next slide, please now. So let's touch on some of the key and most important financial highlights. A really impressive increase in our revenue, up 22%, 60.5 million.

Speaker #2: That really does go to that growth mandate that we've got, and that trajectory. Impressively also, our team, from an FTA point of view, generated 276,000 dollars per FTA.

Speaker #2: That's up 25%, which again is great. It's showing that we are driving that efficiency, that productivity consideration, and moving the business in the right direction.

Speaker #2: In terms of EBITDA margin, stable, with a previous year, FY25. We're looking to increase that through 27 and 28. Underlying EBITDA, again, whether it's reported or underlying, EBITDA, up between 17 and 18%, again, really pleasing result there.

Speaker #2: Another mainstay of the consideration for us is operating cash flow. So again, we were happy to see our operating cash flow improve. Up 47% to 4.3 million for the year.

Speaker #2: So overall, a really good set of numbers. In terms of that top line and that bottom line, I'm going to hand over to Sharon, who's going to touch on a few other items for us.

Speaker #1: Thank you, Simon. Our profit measures require some context this year. The decline in reported earnings was primarily tax-related, while the underlying adjusted earnings trajectory continues to improve, year on year.

Speaker #1: Excluding the effect of the tax rate change, which changed from 25% last year to 30% this year, NPAT would have increased 11% to 5.1 million.

Speaker #1: NPAT-A would have increased 22% to 6.6 million. And reported earnings per share would have increased 5% to 1.96 cents per share. This context provides a clearer view of the underlying operating performance of the business.

Speaker #1: Debt-to-underlying EBITDA was 1.5 times compared with 1.3 times in FY25, reflecting acquisition payments and continued investment in growth. Finally, it's a pleasure to confirm that the board has declared a fully frank dividend of 0.92 cents per share, bringing the fully franked dividend for the full year to 1.72 cents, an increase of 4% year on year.

Speaker #2: Fantastic. Thank you, Sharon. I'm now going to jump into some of the operational highlights, if we can jump onto the next page. Please now.

Speaker #2: So really think about our business operationally across these four key sleeves. So simplification, M&A, and integration, growth, sales, and ideal clients, and technology as an enabler.

Speaker #2: So simplification has probably been the biggest theme that we've been working to over the last 12 months, and will be a continuing theme into FY27.

Speaker #2: So that is about having fewer services available, with greater concentration. Let's do more of the things that we're really good at, and continue to drive that part of our business.

Speaker #2: And identify clients that really have a need for those services, where we are experts. We're also making sure that we have a very clear enterprise view of our customers through our enterprise CRM that has been deployed, and the team are actively using now.

Speaker #2: We need to make sure that we've got complete visibility over our customer base, and make sure that we're clear what they're buying from us, what they need, and what they might need for the future.

Speaker #2: Another key measure of simplification is reducing the transactional revenue in our business. So I was super impressed to see an increase in our recurring revenue, to 85% from what was previously 70%.

Speaker #2: That is a huge uptick. That's a 21% uptick over the course of the last 12 months, and goes to the discipline of that simplification process.

Speaker #2: Another key consideration, which kind of migrates between simplification and also some of the things that we've done from a divestiture point of view, is we did actually reduce our cost base because we have actually divested some clients that didn't meet our ideal client profile.

Speaker #2: So you'll see when you receive the accounts and you have a good read of them, that we divested about 4 million dollars, worth of revenue, and people ask, what's an ideal client look like for us, and why would those clients not ideal?

Speaker #2: Now, a typical client's where we couldn't generate the margin that we're seeking to achieve, and where they don't necessarily need multiple services. Our ideal clients value what it is that we can do across the totality of our offering, and we are able to then deliver to them at a margin that is appropriate for our business.

Speaker #2: So when we did reduce our customer base and sell some of those clients to colleagues within the industry, we were able to reduce our cost base, and that particularly occurred within Q4.

Speaker #2: Another key consideration for us has been on the recruitment front. We were wrapped to bring into our team in the last 12 months two new leaders across both business and wealth that were able to bring with them 1.7 million dollars in annualized revenue that contributed to FY26, and that will be more in FY27.

Speaker #2: That's part of our acquihire growth model, which I'll talk to in a little bit more detail later on. Another key consideration for us around M&A and integration and deep integration has been around the Lincoln indicator's business that we acquired back in May 2025.

Speaker #2: That was our largest acquisition that we have done in the last six, and I'm pleased to say that that is deeply sitting in the middle of our wealth segment, and we are actively delivering additional value and services to that customer base.

Speaker #2: In terms of growing our business, sales, account management, the thing that we're really wrapped about in terms of this year that's just gone is in three core growth areas across wealth, SMSF, and accounting.

Speaker #2: These are impressive numbers. Those areas grew somewhere between 14% and and 44% for the year. That includes acquisitions, but importantly, it shows that when we do focus on those key things that our clients need, and where we can grow, we can deliver some fantastic outcomes.

Speaker #2: That bodes really well for FY27, 28, and through to 30, and our goal of getting to 100 million of revenue by FY28 to 30.

Speaker #2: But we are very much obsessed with making sure that we do deal with what we consider those ideal client profiles. When we are focused on that, it means that our sales, account management, and servicing procedures are better, more defined, and we can deliver more value for our customers.

Speaker #2: And part of that customer journey is making sure that we do enable technology and I've said this before, we're not first off the bench to launch into technology, but we are making steps forward.

Speaker #2: We do have a fantastic team internally that are partnering up with external providers in partnership to make sure that we are enabling and simplifying our business so that we can scale and deliver better customer service.

Speaker #2: But a key component of our technology strategy is making sure that we have got our data consolidated, data is king in terms of what we do, and being able to manage our business efficiently, and to be able to achieve that roadmap of growth that we desire.

Speaker #2: So data consolidation is important to make sure that we can manage our workflows, we can introduce AI in a very acceptable and risk-governed manner, so we've got a lot of work that's going on around data consolidation.

Speaker #2: Thanks, Nat. So what are the key themes that continue to drive our business forward? So firstly, M&A and business succession, whether it's occurring in our own industry and our industry is very active at the moment across professional and financial services, almost a month doesn't go by without seeing some sort of M&A whether it's in accounting, whether it's in wealth, or asset management.

Speaker #1: We're very much obsessed with making sure that we do deal with what we consider those ideal client profiles. When we are focused on that, it means that our sales, account management, and servicing procedures are better, more defined, and we can deliver more value for our customers.

Simon Madder: Very much obsessed with making sure that we do deal with what we consider those ideal client profiles. When we are focused on that, it means that our sales, account management, and servicing procedures are better, more defined, and we can deliver more value for our customers. Part of that customer journey is making sure that we do enable technology. I have said this before, we are not first off the bench to launch into technology, but we are making steps forward. We do have a fantastic team internally that are partnering up with external providers in partnership to make sure that we are enabling and simplifying our business so that we can scale and deliver better customer service. A key component of our technology strategy is making sure that we have got our data consolidated.

Speaker #1: And part of that customer journey is making sure that we do enable technology—and I've said this before—we're not first off the bench to launch into technology, but we are making steps forward.

Speaker #2: It's a very active space where private equity are playing an increasingly large role. One thing I'd just highlight is that in the US recently, Grant Thornton, one of the larger accounting firms, actually spent over $5 billion buying what was the largest listed accounting firm in the US.

Speaker #1: We do have a fantastic team internally that are partnering up with external providers, in partnership, to make sure that we are enabling and simplifying our business so that we can scale and deliver better customer service.

Speaker #2: So things are active. We're in the right space at the right time, and we think we have a really important role to play in what takes place over the next three to five years.

Speaker #1: But a key component of our technology strategy is making sure that we've got our data consolidated. Data is king in terms of what we do, and being able to manage our business efficiently.

Simon Madder: Data is king in terms of what we do and being able to manage our business efficiently and to be able to achieve that roadmap of growth that we desire. So data consolidation is important to make sure that we can manage our workflows, we can introduce AI in a very acceptable and risk-governed manner. So we have got a lot of work that is going on around data consolidation. Thanks, Nat. What are the key themes that continue to drive our business forward? Firstly, M&A and business succession, whether it is occurring in our own industry, and our industry is very active at the moment across professional and financial services. Almost a month does not go by without seeing some sort of M&A, whether it is in accounting, whether it is in wealth or asset management. It is a very active space where private equity are playing an increasingly large role.

Speaker #2: So M&A and business succession in our own industry and for our clients is super important. And that plays to part of that intergenerational wealth transfer conversation.

Speaker #1: And to be able to achieve that roadmap of growth that we desire. So, data consolidation is important to make sure that we can manage our workflows and we can introduce AI in a very acceptable and risk-governed manner. So, we've got a lot of work that's going on around data consolidation.

Speaker #2: It is increasingly on the radar for our clients, and we are lucky that we can deliver more value under the one roof for a lot of our clients, whether that's passing on portfolios or other assets, and making sure that it's structured correctly and that there's a trusted advisor that can support, or whether or not it's selling a business, and that what that succession might look like.

Speaker #1: Thanks, Matt. So, one of the key themes that continues to drive our business forward—so firstly, M&A and business succession. Whether it's occurring in our own industry—and our industry is very active at the moment across professional and financial services—almost a month doesn't go by without seeing some sort of M&A, whether it's in accounting, wealth, or asset management. It's a very active space, where private equity is playing an increasingly large role.

Speaker #2: And where we're positioning ourselves and our ideal client profile and brand is in that mid-market opportunity. That's why we're precise about ideal clients, about the clients that we might otherwise divest.

Speaker #2: That we respect, but to other participants in the industry. And a really key thing that we've seen play out post-budget is the need for advice.

Speaker #1: One thing I'd just highlight is that in the US recently, Grant Thornton, one of the larger accounting firms, actually spent over $5 billion buying what was the largest listed accounting firm in the US.

Simon Madder: One thing I would just highlight is that in the US recently, Grant Thornton, one of the larger accounting firms, actually spent over AUD 5 billion buying what was the largest listed accounting firm in the US. So things are active. We are in the right space at the right time, and we think we have a really important role to play in what takes place over the next three to five years. So M&A and business succession in our own industry and for our clients is super important. That plays to part of that intergenerational wealth transfer conversation.

Speaker #2: Clients have needed advice all the way through, but probably even more so in the next 12 months than ever before across accounting, structuring, wealth management.

Speaker #1: So, things are active. We're in the right space at the right time, and we think we have a really important role to play in what takes place over the next 3 to 5 years.

Speaker #2: There are a lot of conversations and a great deal of need that we look forward to supporting our clients with over the next 12, 24, and 36 months.

Speaker #1: So M&A and business succession in our own industry, and for our clients, is super important. And that plays into part of that intergenerational wealth transfer conversation.

Speaker #2: So there's some of the key themes driving our growth. I'm now just going to touch on a few of the things in relation to our financials.

Speaker #1: It is increasingly on the radar for our clients, and we are lucky that we can deliver more value under one roof for a lot of our clients—whether that's passing on portfolios or other assets and making sure that it's structured correctly and that there's a trusted advisor that can support, or whether or not it's selling a business.

Speaker #2: So we might just jump onto the next slide if we can. I'm not going to dive myself or Sharon have already covered, I just highlight probably the two top points.

Simon Madder: It is increasingly on the radar for our clients, and we are lucky that we can deliver more value under the one roof for a lot of our clients, whether that is passing on portfolios or other assets and making sure that it is structured correctly and that there is a trusted advisor that can support, or whether or not it is selling a business and what that succession might look like. Where we are positioning ourselves and our ideal client profile and brand is in that mid-market opportunity. That is why we are precise about ideal clients, about the clients that we might otherwise divest, that we respect, but to other participants in the industry. A really key thing that we have seen play out post-budget is the need for advice. Clients have needed advice all the way through, but probably even more so in the next 12 months than ever before.

Speaker #2: The revenue of the wealth segment and the revenue of the business segment. Yes, impressive that see the wealth segment up 37%, but we're probably doing the business segment a bit of a disservice there by suggesting it's only up 2%.

Speaker #1: And what that succession might look like—and where we're positioning ourselves and our ideal client profile and brand—is in that mid-market opportunity. That's why we're precise about ideal clients, and about the clients that we might otherwise divest.

Speaker #2: The business segment combined, both what we do in accounting and also in capital or corporate finance, which is what we're de-emphasizing, the capital and the corporate finance part of what we do.

Speaker #1: That we respect, but to other participants in the industry. And a really key thing that we've seen play out post-budget is the need for advice.

Speaker #2: So that was down. It's not a focus for us. We will do that for particular instances for clients, but that's probably muted some of the fantastic results of that business segment, which has included our accounting operations putting up 25%, which was a really impressive outcome.

Speaker #1: Clients have needed advice all the way through, but probably even more so in the next 12 months than ever before, across accounting, structuring, and wealth management.

Simon Madder: Across accounting, structuring, wealth management, there are a lot of conversations and a great deal of need that we look forward to supporting our clients with over the next 12, 24, and 36 months. There are some of the key themes driving our growth. I am now just going to touch on a few of the things in relation to our financials. We might just jump onto the next slide if we can. I am not going to dive into detail that either myself or Sharon have already covered. I would just highlight probably the two top points, the revenue of the wealth segment and the revenue of the business segment. Yes, impressive to see the wealth segment up 37%, but we are probably doing the business segment a bit of a disservice there by suggesting it is only up 2%.

Speaker #1: There are a lot of conversations and a great deal of need that we look forward to supporting our clients with over the next 12, 24, and 36 months.

Speaker #2: So we might jump onto the next slide, and I can dive into a little bit more detail if we can. So total revenue for the year as suggested, 60.5 million, up 22%, and in terms of our contracts with customers, up 20%.

Speaker #1: So those are some of the key themes driving our growth. Now, I'm just going to touch on a few things in relation to our financials.

Speaker #2: I'm going to keep restating this. Have a look at that bottom left-hand corner of this slide. Wealth, up 44%, and a really positive trajectory that seems pretty consistent.

Speaker #1: So we might just jump onto the next slide if we can. I'm not going to dive into detail that either myself or Sharon have already covered; I'll just highlight probably the two top points.

Speaker #2: SMSF, up 14%, and accounting, up 25%, we're going to do more of this. This will be a focus for our M&A, for our equity hire, and equity hire is simply M&A by a different term.

Speaker #1: The revenue of the Wealth segment and the revenue of the Business segment—yes, it's impressive to see the Wealth segment up 37%. But we're probably doing the Business segment a bit of a disservice there by suggesting it's only up 2%.

Speaker #2: It's when someone or a group of people join you with a client base but not a legacy of the structure that might otherwise come through an acquisition.

Speaker #1: The business segment combines both what we do in accounting and also in capital or corporate finance, which is what we're de-emphasizing: the capital and the corporate finance part of what we do.

Simon Madder: The business segment combines both what we do in accounting and also in capital or corporate finance, which is what we are de-emphasizing, the capital and the corporate finance part of what we do. That was down. It is not a focus for us. We will do that for particular instances for clients. But that is probably muted some of the fantastic results of that business segment, which has included our accounting operations being up 25%, which was a really impressive outcome. We might jump onto the next slide, and I can dive into a little bit more detail if we can. Total revenue for the year, as suggested, AUD 60.5 million, up 22%. And in terms of our contracts with customers, up 20%. I am going to keep restating this. Have a look at that bottom left-hand corner of this slide.

Speaker #2: So we'll focus our attention in those three key areas, as I said, capital is important, but it's transactional revenue and not an area that we want to focus.

Speaker #1: So, that was down. It's not a focus for us. We will do that for particular instances for clients, but that's probably muted some of the fantastic results of that business segment, which has included our accounting operations being up 25%, which was a really impressive outcome.

Speaker #2: Our focus is on recurring revenue and, as I said before, that's up 21% for the year. To 85% of our total revenue. We will continue to hone in on that target we gave three or four years ago which was to get to 100 mill.

Speaker #1: So we might jump onto the next slide, and I can dive into a little bit more detail if we can. So, total revenue for the year, as suggested, was $60.5 million, up 22%, and in terms of our contracts with customers, up 20%.

Speaker #2: I think when we gave that target, we're at circa 25 million of revenue. So our business is very much growth-minded, but we are focused from the majority of the time not just on the revenue, but the quality of the earnings that comes from that revenue and the margin that we can actually achieve from it.

Speaker #1: I'm going to keep restating this. Have a look at that bottom left-hand corner of this slide. Wealth: up 44%, and a really positive trajectory that seems pretty consistent.

Simon Madder: Wealth up 44% and a really positive trajectory that seems pretty consistent. SMSF up 14% and accounting up 25%. We are going to do more of this. This will be a focus for our M&A, for our acqui-hire. An acqui-hire is simply M&A by a different term. It is when someone or a group of people join you with a client base but not the legacy of the structure that might otherwise come through an acquisition. So we will focus our attention in those three key areas. As I said, capital is important, but it is transactional revenue and not an area that we want to focus. Our focus is on recurring revenue, and as I said before, that is up 21% for the year to 85% of our total revenue. We will continue to hone in on that target we gave three or four years ago, which was to get to AUD 100 million.

Speaker #2: So overall, you're seeing there some focus areas, some de-emphasis, and if you look at the top part of that graph, you can see a real consistency on how we've grown our business, and we believe we can continue to scale and to do that increasingly at better margins with improving operating cash flow.

Speaker #1: SMSF: up 14%, and accounting: up 25%. We're going to do more of this. This will be a focus for our M&A, for our equity hire—and 'equity hire' is simply M&A via a different term.

Speaker #1: It's when someone or a group of people join you with a client base, but not the legacy of the structure that might otherwise come through an acquisition.

Speaker #2: On that note, I'm going to hand over to Sharon, who's going to touch on some of the margin-related issues.

Speaker #1: So we'll focus our attention on those three key areas. As I said, capital is important, but it's transactional revenue and not an area that we want to focus on.

Speaker #1: Thanks, Simon. Our underlying EBITDA to members increased from 7.8 million in FY22 to 13.9 million in FY26, and includes year-on-year growth of 18%. The growth has been achieved while reducing reliance on transactional revenue, as Simon discussed, and the FY26 underlying EBITDA margin while it remained at 24% and consistent with last year, was really driven through acquisition, integration activity, investment in technology and systems, and organizational changes undertaken during the year.

Speaker #1: Our focus is on recurring revenue and, as I said before, that's up 21% for the year, to 85% of our total revenue. We will continue to hone in on that target we gave three or four years ago, which was to get to $100 million.

Speaker #1: I think when we gave that target, we were at circa $25 million of revenue. So our business is very much growth-minded. But we are focused, for the majority of the time—not just on the revenue—but on the quality of the earnings that comes from that revenue and the margin that we can actually achieve from it.

Simon Madder: I think when we gave that target, we were at circa AUD 25 million in revenue. So our business is very much growth-minded, but we are focused for the majority of the time, not just on the revenue, but the quality of the earnings that comes from that revenue and the margin that we can actually achieve from it. So overall, you are seeing there some focus areas, some de-emphasis. And if you look at the top part of that graph, you can see a real consistency on how we have grown our business. And we believe we can continue to scale and to do that increasingly at better margins with improving operating cash flow. On that note, I am going to hand over to Sharon, who is going to touch on some of the margin-related issues.

Speaker #1: During the fourth quarter, prime accelerated its focus on operational efficiency and cost-based reduction. Those actions, together with workflow improvement, automation, and data consolidation, are expected to support future margin improvement and operating leverage.

Speaker #1: So overall, you're seeing there are some focus areas, some de-emphasis, and if you look at the top part of that graph, you can see a real consistency in how we've grown our business.

Speaker #1: And we believe we can continue to scale, and to do that increasingly at better margins, with improving operating cash flow. On that note, I'm going to hand over to Sharon, who's going to touch on some of the margin-related issues.

Speaker #1: The strategic priority for us in FY27 is to convert the additional scale already achieved into ongoing top-line growth and improved earnings conversion. Thank you, Nat.

Speaker #2: Thanks, Simon. Our underlying EBITDA to members increased from $7.8 million in FY22 to $13.9 million in FY26 and includes year-on-year growth of 18%. This growth has been achieved while reducing reliance on transactional revenue, as Simon discussed. The FY26 underlying EBITDA margin—while it remained at 24% and consistent with last year—was really driven through acquisition and integration activity, investment in technology and systems, and organizational changes undertaken during the year.

Sharon Papworth: Thanks, Simon. Our underlying EBITDA to members increased from AUD 7.8 million in FY22 to AUD 13.9 million in FY26, and includes year-on-year growth of 18%. The growth has been achieved while reducing reliance on transactional revenue, as Simon discussed, and the FY26 underlying EBITDA margin, while it remained at 24% and consistent with last year, was really driven through acquisition integration activity, investment in technology and systems, and organizational changes undertaken during the year. During the Q4, Prime accelerated its focus on operational efficiency and cost base reduction. Those actions, together with workflow improvement, automation, and data consolidation, are expected to support future margin improvement and operating leverage. The strategic priority for us in FY27 is to convert the additional scale already achieved into ongoing top-line growth and improved earnings conversion. Thank you, Nat. Our balance sheet remains positioned to support Prime's growth strategy.

Speaker #1: Our balance sheet remains positioned to support prime's growth strategy. Net assets increased to 61.2 million at June, acquisition payments largely contributed to the increase in net debt of 20.6 million, which is up from 14.9 million last year.

Speaker #1: This was also reflected in an increase in net debt to underlying EBITDA to members, which increased to 1.5 times, however continues to be well below our banking covenant requirements.

Speaker #1: Pleasingly, our operating cash flow increased 47% to 4.3 million, and this improvement is really important because it does demonstrate stronger conversion of earnings into cash flow.

Speaker #2: During the fourth quarter, Prime accelerated its focus on operational efficiency and cost reduction. These actions, together with workflow improvement, automation, and data consolidation, are expected to support future margin improvement and operating leverage.

Speaker #1: Prime also has access to Westpac facilities of approximately 42.6 million, of which 21.6 million was drawn down at year-end. This provides us with the capacity to support working capital, existing commitments, and disciplined strategic growth.

Speaker #2: The strategic priority for us in FY27 is to convert the additional scale already achieved into ongoing top-line growth and improved earnings conversion. Thank you, Nat.

Speaker #1: Our approach remains to balance investment and shareholder returns with prudent leverage and active cash management. Thank you, Nat. As mentioned earlier, the board has declared a fully-franked final dividend of 0.92 cents per share.

Speaker #2: Our balance sheet remains positioned to support Prime's growth strategy. Net assets increased to $61.2 million at June. Acquisition payments largely contributed to the increase in net debt of $20.6 million, which is up from $14.9 million last year.

Sharon Papworth: Net assets increased to AUD 61.2 million at June. Acquisition payments largely contributed to the increase in net debt of AUD 20.6 million, which is up from AUD 14.9 million last year. This was also reflected in an increase in net debt to underlying EBITDA to members, which increased to 1.5 times. However, continues to be well below our banking covenant requirements. Pleasingly, our operating cash flow increased 47% to AUD 4.3 million, and this improvement is really important because it does demonstrate stronger conversion of earnings into cash flow. Prime also has access to Westpac's facilities of approximately AUD 42.6 million, of which AUD 21.6 million was drawn down at year-end. This provides us with the capacity to support working capital, existing commitments, and disciplined strategic growth.

Speaker #1: Together with the interim dividend of 0.8 cents per share, this brings the FY26 full year fully-franked dividend to 1.72 cents per share, an increase of 4% over last year, and a substantial increase of 1 increase from 1.1 cents per share in FY22.

Speaker #2: This was also reflected in an increase in net debt to underlying EBITDA to members, which increased to 1.5 times; however, it continues to be well below our banking covenant requirements.

Speaker #2: Pleasingly, our operating cash flow increased 47% to $4.3 million, and this improvement is really important because it does demonstrate stronger conversion of earnings into cash flow.

Speaker #1: The final dividend record date is the 3rd of September, with payment scheduled on the 28th of September. I can also confirm that the dividend reinvestment plan is available for the final dividend.

Speaker #2: Prime also has access to Westpac's facilities of approximately $42.6 million, of which $21.6 million was drawn down at year-end. This provides us with the capacity to support working capital, existing commitments, and disciplined strategic growth.

Speaker #1: The dividend increase reflects the board's confidence in Prime's underlying business while maintaining an appropriate balance between shareholder distributions debt management and reinvestment in growth.

Speaker #1: Thank you, Nat.

Speaker #2: Our approach remains to balance investment and shareholder returns with prudent leverage and active cash management. Thank you, Nat. As mentioned earlier, the Board has declared a fully franked final dividend of 0.92 cents per share.

Sharon Papworth: Our approach remains to balance investment and shareholder returns with prudent leverage and active cash management. Thank you, Nat. As mentioned earlier, the board has declared a fully franked final dividend of AUD 0.92 cents per share. Together with the interim dividend of AUD 0.8 cents per share, this brings the FY26 full year fully franked dividend to AUD 1.72 cents per share. An increase of 4% over last year, and a substantial increase from AUD 1.1 cents per share in FY22. The final dividend record date is the 3 September, with payment scheduled on the 28 September. I can also confirm that the dividend reinvestment plan is available for the final dividend. The dividend increase reflects the board's confidence in Prime's underlying business while maintaining an appropriate balance between shareholder distributions, debt management, and reinvestment in growth. Thank you, Nat.

Sharon Papworth: Our approach remains to balance investment and shareholder returns with prudent leverage and active cash management. Thank you, Nat. As mentioned earlier, the board has declared a fully franked final dividend of AUD 0.0092 per share. Together with the interim dividend of AUD 0.8 per share, this brings the FY26 full year fully franked dividend to AUD 1.72 per share. An increase of 4% over last year, and a substantial increase from AUD 1.1 per share in FY22. The final dividend record date is the 3 September, with payment scheduled on the 28 September. I can also confirm that the dividend reinvestment plan is available for the final dividend. The dividend increase reflects the board's confidence in Prime's underlying business while maintaining an appropriate balance between shareholder distributions, debt management, and reinvestment in growth. Thank you, Nat.

Speaker #2: Thanks, Nat. We'll jump into strategy and the focus for FY27. Intentionally simple, and from a growth point of view, organic growth across those three key areas I've already touched on, that 410 to 44% growth component across wealth, accounting, and SMSF.

Speaker #2: We're going to do more of it. We believe we can scale it and scale that efficiently. That cross-sell program for value for our customers will continue through our one connected mindset, and that will absolutely complement what we're doing in our core growth areas.

Speaker #2: Together with the interim dividend of 0.8 cents per share, this brings the FY26 full-year fully franked dividend to 1.72 cents per share, an increase of 4% over last year, and a substantial increase of $1.

Speaker #2: Equity hire I've touched on, I think we can accelerate that. We're in market talking to lots of people. To make sure we find those people that want to be part of that multiple service journey for their clients, but also to have an equity interest in our business.

Speaker #2: ...increase from 1.1 cents per share in FY22. The final dividend record date is the 3rd of September, with payment scheduled for the 28th of September.

Speaker #2: And just as a reminder, 44% of Prime is actually owned by the team, and that's a really important alignment consideration for us to marry up between external shareholders and internal shareholders to drive the right behaviors, and the right level of continuity.

Speaker #2: I can also confirm that the dividend reinvestment plan is available for the final dividend. The dividend increase reflects the board's confidence in Prime's underlying business, while maintaining an appropriate balance between shareholder distributions, debt management, and reinvestment in growth.

Speaker #2: So finding people, whether it's through equity hire, internal promotion, and also selective acquisition, will all form part of what we would do for the future.

Speaker #2: Thank you, Nat.

Speaker #2: And that's that bridge between 60 million of revenue to around about 100 million of revenue. That's how we continue to grow our business. We're not doing anything outstandingly different, but to continue to do it better.

Speaker #1: Thanks, Nat. We'll jump into strategy and the focus for FY27. Intentionally simple. And from a growth point of view, organic growth across those three key areas I've already touched on—that 4% to 10% to 4% to 4% growth component across wealth, accounting, and SMSF.

Simon Madder: Thanks, Nat. We'll jump into strategy and the focus for FY27. Intentionally simple, and from a growth point of view, organic growth across those three key areas I've already touched on, that 14% to 44% growth component across wealth, accounting, and SMSF. We're going to do more of it. We believe we can scale it and scale it efficiently. That cross-sell program for value for our customers will continue through our one connected mindset, and that will absolutely complement what we're doing in our core growth areas. Acqui-hire, I've touched on. I think we can accelerate that. We're in market talking to lots of people to make sure we find those people that want to be part of that multiple service journey for their clients, but also to have an equity interest in our business. Just as a reminder, 44% of Prime is actually owned by the team.

Speaker #2: And part of that better process for us is around productivity and technology. That's a core focus for us into FY22. So those efficiency improvements, the Sharon spoken to, whether it's workflow automation, AI, making sure that you're developing your team internally, all really important to allow us to achieve our objectives, but most importantly, also for our clients.

Speaker #1: We're going to do more of it. We believe we can scale it—and scale it efficiently. That cross-sell program, providing value for our customers, will continue through our One Connected mindset.

Speaker #1: And that will absolutely complement what we're doing in our core growth areas. Acquihires I have touched on—I think we can accelerate that. We're in-market talking to lots of people.

Speaker #2: Those ideal clients will remain a focus for us, and we'll continue to consolidate our existing capabilities and keep on simplifying our business. One final word would simply be really proud of the team and what they've developed over the course of the last 12 months in terms of our business model, our target operating model, and the results that have been achieved.

Speaker #1: To make sure we find those people that want to be part of that multiple-service journey for their clients, but also to have an equity interest in our business.

Speaker #1: And just as a reminder, 44% of Prime is actually owned by the team. And that's a really important alignment consideration for us, to marry up between external shareholders and internal shareholders, to drive the right behaviors and the right level of continuity.

Simon Madder: And that's a really important alignment consideration for us to marry up between external shareholders and internal shareholders to drive the right behaviors and the right level of continuity. Finding people, whether it's through acqui-hire, internal promotion, and also selective acquisition, will all form part of what we would do for the future. That's that bridge between AUD 60 million of revenue to around about AUD 100 million of revenue. That's how we continue to grow our business. We're not doing anything outstandingly different, but to continue to do it better. Part of that better process for us is around productivity and technology. That's a core focus for us into FY27.

Speaker #2: We've got a wonderful team that works really hard to deliver value for customers, but also for shareholders. So I absolutely want to thank them as I do want to thank shareholders for their continued support.

Speaker #1: So, finding people—whether it's through acquihire, internal promotion, or selective acquisition—will all form part of what we would do for the future.

Speaker #2: But for now, that's probably enough from myself and Sharon, and we'll probably hand back to you, Nat.

Speaker #3: Thank you Simon. Thank you Sharon. Probably just a few questions. Firstly, Prime recently exited an NBIO that was in place. Can you share what was the reasoning behind the exit?

Speaker #1: And that's that bridge between $60 million of revenue to around about $100 million of revenue. That's how we continue to grow our business. We're not doing anything outstandingly different, but we continue to do it better.

Speaker #1: And part of that better process for us is around productivity and technology. That's a core focus for us into FY27. So those efficiency improvements that Sharon spoke to, whether it's workflow automation, AI, making sure that you're developing your team internally—all really important to allow us to achieve our objectives, but most importantly, also for our clients.

Speaker #2: Absolutely. Thanks, Nat. If you're happy, if you want to take Sharon. So firstly, a non-binding indicative offer is exactly that. It's an intention to do something together.

Simon Madder: Those efficiency improvements that Sharon's spoken to, whether it's workflow, automation, AI, making sure that you're developing your team internally, are all really important to allow us to achieve our objectives, but most importantly, also for our clients. Those ideal clients will remain a focus for us, and we'll continue to consolidate our existing capabilities and keep on simplifying our business. One final word would simply be really proud of the team and what they've developed over the course of the last 12 months in terms of our business model, our target operating model, and the results that have been achieved. We've got a wonderful team that works really hard to deliver value for customers but also for shareholders. I absolutely want to thank them, as I do want to thank shareholders for their continued support.

Speaker #2: We've obviously done some due diligence. And we're keen to see whether or not the businesses can fit together. Firstly, we have the utmost respect for anyone that's willing to entertain a conversation about what the future of their business might look like.

Speaker #1: Those ideal clients will remain a focus for us, and we'll continue to consolidate our existing capabilities and keep on simplifying our business. One final word would simply be that I'm really proud of the team and what they've developed over the course of the last 12 months in terms of our business model, our target operating model, and the results that have been achieved.

Speaker #2: Particularly in that partnership model that we've worked to. So the respect remains, even though we didn't proceed with this particular transaction. But things changed.

Speaker #2: The business looked different. There was a different risk profile. And we couldn't justify the valuation on that business based on the circumstances that we're presenting.

Speaker #1: We've got a wonderful team that works really hard to deliver value for customers, but also for shareholders. So I absolutely want to thank them, as I do want to thank shareholders for their continued support.

Speaker #2: To us. So unfortunately, we couldn't proceed with it. It was a long journey. We spent many months and almost a year in discussions. So we didn't make any decision lightly.

Speaker #1: But for now, that's probably enough from myself and Sharon, and we'll probably hand back to you, Nat.

Simon Madder: But for now, that's probably enough from myself and Sharon, and we'll probably hand back to you, Nat.

Speaker #3: Thank you, Simon. Thank you, Sharon. I probably just have a few questions. Firstly, Prime recently exited an NBIO that was in place. Can you share what the reasoning was behind the exit?

Operator: Thank you, Simon. Thank you, Sharon. Probably just a few questions. Firstly, Prime recently exited an NBIO that was in place. Can you share what was the reasoning behind the exit?

Speaker #2: But I believe we've made the right decision. We are very protective of investor capital, and we want to make sure that we deploy that to the best possible opportunities.

Speaker #2: So we thank the founder of that business, who we really do respect, for taking the time to spend it with us, but it just wasn't going to work out for the future.

Speaker #1: Absolutely. Thanks, Nat. If you're happy, feel free to take the show. So firstly, an unbinding indicative offer is exactly that—it's an intention to do something together.

Simon Madder: Absolutely. Thanks, Anne. If you're happy for me to take this, Sharon. Firstly, a non-binding indicative offer is exactly that. It's an intention to do something together. We've obviously done some due diligence, and we're keen to see whether or not the businesses can fit together. Firstly, we have the utmost respect for anyone that's willing to entertain a conversation about what the future of their business might look like, particularly in that partnership model that we've worked to. So the respect remains, even though we didn't proceed with this particular transaction. But things changed. The business looked different, there was a different risk profile, and we couldn't justify the valuation on that business based on the circumstances that were presenting to us. Unfortunately, we couldn't proceed with it. It was a long journey.

Speaker #3: Thank you, Simon. Another question is around the you spoke about the diversity show of some clients. Can you just explain a little bit more about what makes an ideal or a non-ideal client?

Speaker #1: We've obviously done some due diligence, and we're keen to see whether or not the businesses can fit together. Firstly, we have the utmost respect for anyone who's willing to entertain a conversation about what the future of their business might look like.

Speaker #2: Yeah. So firstly, on the ideal client front, we have been really explicit that our model and probably our key point of difference is the ability to work with clients over an extended period of time across both business and wealth.

Speaker #1: Particularly in that partnership model that we've worked to, the respect remains even though we didn't proceed with this particular transaction. But things changed.

Speaker #2: And within that business and wealth, those two core segments, there's multiple different service lines that we can actually deliver to clients. So our most ideal clients are ones that typically are pretty ambitious, that want to do things, that want to actually head in the right direction, and they need support to achieve their goals and objectives, as usually a multiple service provision that they're looking for.

Speaker #1: The business looked different. There was a different risk profile, and we couldn't justify the valuation on that business based on the circumstances that were presenting.

Speaker #1: To us, so unfortunately, we couldn't proceed with it. It was a long journey. We spent many months—almost a year—in discussions, so we didn't make any decision lightly.

Simon Madder: We spent many months and almost a year in discussions, so we didn't make any decision lightly. But I believe we've made the right decision. We are very protective of investor capital, and we want to make sure that we deploy that to the best possible opportunities. So we thank the founder of that business, who we really do respect, for taking the time to spend it with us. But it just wasn't going to work out for the future.

Speaker #2: And clearly, they're more often than not larger clients. And that's why we're focused on that

Speaker #1: But I believe we've made the right decision. We are very protective of investor capital, and we want to make sure that we deploy that to the best possible opportunities.

Speaker #1: That big market . So we're there . Our clients that probably have an isolated need or a one off need . They're probably less appropriate for us unless there is a pathway to doing more for them .

Speaker #1: So we thank the founder of that business, whom we really do respect, for taking the time to spend it with us for the future.

Speaker #1: And you know , without sounding sort of too mercenary about it , we've got to be able to make money on the service that we deliver to clients .

Speaker #3: Thank you, Simon. Another question is around—you spoke about the diversity of some clients. Can you just explain a little bit more about what makes an ideal or a non-ideal client?

Operator: Thank you, Simon. Another question is around the. You spoke about the divestiture of some clients. Can you just explain a little bit more about what makes an ideal or a non-ideal client?

Speaker #1: And in some cases , the equation just doesn't work out So when there are those occasions and it will come up from time to time , we will respectfully work out scenarios to pass those clients onto other industry participants , people that we trust and provide them the opportunity to service the clients and do it the right way .

Speaker #1: Yeah, so firstly, on the ideal client front, we have been really explicit that our model—and probably our key point of difference—is the ability to work with clients over an extended period of time across both business and wealth.

Simon Madder: Yeah. Firstly, on the ideal client front, we have been really explicit that our model and probably our key point of difference is the ability to work with clients over an extended period of time across both business and wealth. And within that business and wealth, those two core segments, there's multiple different service lines that we can actually deliver to clients. So our most ideal clients are ones that typically are pretty ambitious, that want to do things, that want to actually head in the right direction, and they need support to achieve their goals and objectives, and it's usually a multiple service provision that they're looking for. And clearly, they're more often than not larger clients, and that's why we're focused on that mid-market.

Speaker #1: So that's where we will divest . We will realize capital , and then we will reinvest that capital into activities that fit the profile of our strategy Thank you .

Speaker #1: And within that business and wealth—those two core segments—there's multiple different service lines that we can actually deliver to clients. So our most ideal clients are ones that typically are pretty ambitious, that want to do things, that want to actually head in the right direction, and they need support to achieve their goals and objectives.

Speaker #2: You also spoke about some cost savings in the last quarter of FY 26 . Can you explain how that will play into FY 27 ?

Speaker #1: It's usually a multiple service provision that they're looking for, and clearly, more often than not, these are larger clients. That's why we're focused on that mid-market.

Speaker #1: Yeah . So I think the that probably the key item I cover around the operational highlights of simplification . Firstly , we have de-emphasized what we're do in capital .

Speaker #1: So, where there are clients that probably have an isolated need or a one-off need, they're probably less appropriate for us, unless there is a pathway to doing more for them.

Simon Madder: Where there are clients that probably have an isolated need or a one-off need, they are probably less appropriate for us unless there is a pathway to doing more for them. Without sounding too mercenary about it, we have got to be able to make money on the service that we deliver to clients. In some cases, the equation just doesn't work out. When there are those occasions, and it will come up from time to time, we will respectfully work out scenarios to pass those clients on to other industry participants, people that we trust, and provide them the opportunity to service the clients and do it the right way. That is where we will divest, we will realize capital, and then we will reinvest that capital into activities that fit the profile of our strategy.

Speaker #1: That has meant that we've reshaped our headcount in the capital division and our requirements for the future . So that obviously has an impact in terms of reducing the cost base as it relates to that , because that service line is not a focus for us , but operationally with a simpler business , you're very much more careful about where you spend your money .

Speaker #1: And without sounding sort of too mercenary about it, we've got to be able to make money on the service that we deliver to clients.

Speaker #1: And in some cases, the equation just doesn't work out. So when there are those occasions, and it will come up from time to time, we will respectfully work out scenarios to pass those clients on to other industry participants, people that we trust.

Speaker #1: The types of team members that you recruit , where you do the work , whether it's in Australia offshore and what you actually get in terms of technology enablement and the steps that you're taking to be more productive So with a simpler and clearer vision about how we can execute to that growth milestone of 100 mil at a increasingly higher margin , we're pretty picky about what we do , how we resource , and where we spend our capital and our time and our efforts So that will mean that we , when we're not looking out for certain clients that might consume too many resources , then we're more focused on doing the things that more of our customers are ideal customers might be .

Speaker #1: And provide them the opportunity to service the clients and do it the right way. So that's where we will divest. We will realize capital, and then we will reinvest that capital into activities that fit the profile of our strategy.

Speaker #3: Thank you. You also spoke about some cost savings in the last quarter of FY26. Can you explain how that will play into FY27?

Operator: Thank you. You also spoke about some cost savings in the last quarter of FY26. Can you explain how that will play into FY27?

Speaker #1: Yeah, so I think that's probably the key item I covered around the operational highlights of simplification. Firstly, we have de-emphasized what we do in capital.

Simon Madder: Yeah. I think probably that key item I would cover around the operational highlights is simplification. Firstly, we have de-emphasized what we do in capital. That has meant that we have reshaped our head count in the capital division and our requirements for the future. That obviously has an impact in terms of reducing the cost base as it relates to that, because that service line is not a focus for us. But operationally, with a simpler business, you are very much more careful about where you spend your money, the types of team members that you recruit, where you do the work, whether it is in Australia or offshore, and what you actually get in terms of technology enablement and the steps that you are taking to be more productive.

Speaker #1: Perfect .

Speaker #2: The next question is really around the . You speak about targeting between FY 28 and FY 30 up to 100 million , and it's a bit of a double header of a question .

Speaker #1: That has meant that we've reshaped our headcount in the Capital division and our requirements for the future. So that obviously has an impact in terms of reducing the cost base as it relates to that, because that service line is not a focus for us.

Speaker #2: So what are the drivers of that . And will you also be providing a guidance for FY 27 ?

Speaker #1: But operationally, with a simpler business, you're much more careful about where you spend your money, the types of team members that you recruit, where you do the work—whether it's in Australia or offshore—and what you actually get in terms of technology enablement and the steps you're taking to be more productive.

Speaker #1: So the simplicity of our strategy of what we've been able to do well , and that we think that we can do increasingly well .

Speaker #1: Is in those areas that have driven our business from 25 million of turnover to 60 million . But for that small caveat around a small amount of divested clients .

Speaker #1: So, with a simpler and clearer vision about how we can execute to that growth milestone of $100 million, at an increasingly high margin, we're pretty picky about what we do, how we resource, and where we spend our capital, our time, and our efforts.

Speaker #1: So we think we've got this right . We think that we are accelerating with a simplified model . And that model includes organic growth , appropriate prices for the work that you do .

Simon Madder: With a simpler and clearer vision about how we can execute to that growth milestone of AUD 100 million at an increasingly higher margin, we are pretty picky about what we do, how we resource, and where we spend our capital and our time and our efforts. That will mean that when we are not looking after certain clients that might consume too many resources, then we are more focused on doing the things that more of our ideal customers might value.

Speaker #1: It includes finding more people that believe in the vision and the journey . The multiple service journey for customers and acquiring businesses that fill out the family portrait in key locations where we can do more of the good work that we want to do .

Speaker #1: So that will mean that when we're not looking out for certain clients that might consume too many resources, we're more focused on doing the things that more of our customers, our ideal customers, might value.

Speaker #1: So it is an absolute repeat of scaling more of what we've already got , as opposed to starting new journeys in particular . So it's a consolidation .

Speaker #3: Perfect. The next question is really around when you speak about targeting between FY28 and FY30, up to 100 million. And it's a bit of a double-header of a question.

Operator: Perfect. The next question is really around the. You speak about targeting between FY28 and FY30 up to AUD 100 million, and it is a bit of a double header of a question. What are the drivers of that, and will you also be providing a guidance for FY27?

Speaker #1: It's a focus when you do consolidate and you simplify and you reduce that surface area , all the work that you do around workflow , AI , technology , etc.

Speaker #1: becomes simpler because you are just getting more leverage off the back of the work that you're doing . You get a better return on investment .

Speaker #3: So, what are the drivers of that? And will you also be providing guidance for FY27?

Speaker #1: So the simplicity of our strategy, of what we've been able to do well—and that we think we can do increasingly well—is, in those areas, we've driven our business from $25 million turnover to $60 million.

Speaker #1: So in terms of that focus , that's what we'll do . We'll keep doing what we do well in terms of guidance , we never really give guidance until we sort of get to the AGM .

Simon Madder: The simplicity of our strategy of what we have been able to do well and that we think that we can do increasingly well is in those areas that have driven our business from AUD 25 million of turnover to AUD 60 million. But for that small caveat around a small amount of divested clients. We think we have got this right. We think that we are accelerating with a simplified model, and that model includes organic growth, appropriate prices for the work that you do. It includes finding more people that believe in the vision and the journey, the multiple service journey for customers, and acquiring businesses that fill out the family portrait in key locations where we can do more of the good work that we want to do.

Speaker #1: But at the moment , the best guidance I can give is that we're a group of people that are very growth minded . We own part of the business that all of you co-own .

Speaker #1: But for that small caveat around a small amount of divested clients, we think we've got this right. We think that we are accelerating.

Speaker #1: We want to create shareholder value . We know what is . The more precise way to do that . And we are targeting that .

Speaker #1: With a simplified model—and that model includes organic growth, appropriate prices for the work that you do. It includes finding more people that believe in the vision and the journey, the multiple service journey for customers.

Speaker #1: FY 28 to 30 goal of 100 mil each . One of the goals we've set in the last three years , we have achieved .

Speaker #1: So we feel confident that on our trajectory to 28 to 30 , we've got the right moving parts and we'll continue to focus on that

Speaker #1: And acquiring businesses that fill out the family portrait in key locations, where we can do more of the work that we want to do.

Speaker #2: Perfect That brings us to the end of today's presentation . Thank you to everybody . That's joined us . Thank you , Simon .

Speaker #1: So, it is an absolute repeat of scaling more of what we've already got, as opposed to starting new journeys in particular. So, it's a consolidation.

Simon Madder: It is an absolute repeat of scaling more of what we have already got as opposed to starting new journeys in particular. It is a consolidation, it is a focus. When you do consolidate and you simplify and you reduce that surface area, all the work that you do around workflow, AI technology, et cetera, becomes simpler because you are just getting more leverage off the back of the work that you are doing. You get a better return on investment. In terms of that focus, that is what we will do.

Speaker #1: It's a focus. When you do consolidate and you simplify and you reduce that surface area, all the work that you do around workflow, AI, technology, et cetera, becomes simpler because you are just getting more leverage off the back of the work that you're doing.

Speaker #1: You get a better return on investment. So, in terms of that focus, that's what we'll do—we'll keep doing what we do well. In terms of guidance, we never really give guidance until we sort of get to the AGM.

Simon Madder: We will keep doing what we do well. In terms of guidance, we never really give guidance until we sort of get to the AGM. But at the moment, the best guidance I can give is we are a group of people that are very growth-minded. We own part of the business that all of you co-own. We want to create shareholder value.

Speaker #1: But at the moment, the best guidance I can give is we're a group of people that are very growth-minded. We own part of the business that all of you co-own.

Speaker #1: We want to create shareholder value. We know what is the more precise way to do that. And we are targeting that FY28 to FY30 goal of $100 million.

Simon Madder: We know what is the more precise way to do that, and we are targeting that FY28 to 2030 goal of AUD 100 million. Each one of the goals we have set in the last three years, we have achieved. We feel confident that on a trajectory to 2028 to 2030, we have got the right moving parts, and we will continue to focus on that.

Speaker #1: Each one of the goals that we've set in the last three years, we have achieved. So, we feel confident that, on a trajectory to 28 to 30, we've got the right moving parts.

Speaker #1: And we'll continue to focus on that.

Speaker #3: Perfect. That brings us to the end of today's presentation. Thank you to everybody who joined us. Thank you, Simon. Thank you, Sharon. We wish you all a great rest of the day.

Operator: Perfect. That brings us to the end of today's presentation. Thank you to everybody that's joined us. Thank you, Simon. Thank you, Sharon. We wish you all a great rest of the day.

Simon Madder: All right. Thanks, Nat.