Sequoia Financial Group (SEQ) Investor Presentation summary

Financial performance highlights

• Revenue reached $124.6m, up 26% year-on-year, with operating profit at $8.7m, an 88% increase.

• Net profit after tax (NPAT) surged to $24.0m, up 1,012%, and operating cashflow rose 69% to $4.8m.

• Net cash position improved by 79% to $16.8m, and dividends per share increased by 49% to 7.0 CPS fully franked.

Business divisions and market position

• Operates two main divisions: Legal and Administration Services, and Licensee and Adviser Services.

• Legal and Administration Services serves 1,200 accounting firms, holding a 10% market share in a fragmented sector.

• Licensee and Adviser Services is 6th in the market by number of planners (360), with brands like Interprac and Sequoia Wealth Management.

Division performance and growth drivers

• Legal and Administration Services achieved a 55% margin improvement, driven by technology, scale, and integration.

• Licensee and Adviser Services grew advisor numbers despite industry decline, with revenue rising from $89.3m to $113m and EBITDA from $4.4m to $8.4m.

• Both divisions show potential for further growth by cross-selling to existing clients and expanding higher-margin services.