Thank you for standing by, and welcome to the E&P Financial Group Limited Financial Year 2024 Results Webcast. All participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Ben Keeble, Managing Director and CEO. Please go ahead. Good morning, everybody, and welcome to E&P Financial Group's full-year results presentation for the year ending 30 June 2024. My name is Ben Keeble. I'm the Chief Executive Officer and Managing Director of the group. This is my first full-year results presentation, having taken on the role on the first of December last year, and with me here in the room is Robert Darwell, our newly appointed Chief Financial Officer, who started in his role on the first of July this year. Before I start on the presentation itself, in the spirit of reconciliation, I would like to acknowledge the First Nations peoples and traditional custodians of the land on which our offices operate, and acknowledge each community's continuing culture and pay our respects to their elders, past and present. The agenda for the presentation is on slide four. And in today's briefing, I'll provide an update on the progress that we've made through the course of financial year 2024, a number of the highlights of the year, an outline of the refocusing of the group's strategy, and the focus of the business going forward. We'll also touch on the FY 2024 financial results, both for the group and each of our three divisions. Robert will then address the group's consolidated financial results. I'll conclude with some comments on the outlook for the business, and then we'll open up the call for Q&A. On slide six, we've covered a number of the FY 2024 highlights. During the course of the year, we resolved the last of the legacy issues confronting the business. We signed a settlement deed in respect of the representative proceedings, brought against the group, and that's brought an end to a very difficult chapter in the history of the business. We'd like to thank our shareholders, staff, and stakeholders for their patience whilst these matters have been resolved. We also finalized the simplification of our funds business, the last piece of which was the internalization of URF, which was completed at the end of June. We continued to invest in the breadth of our wealth business and its capability, and I'll touch in a moment on the favorable industry dynamics, in that sector of the market. And lastly, we solidified the core business. So with the simplification of the group, it's now very clear, what the go-forward business looks like. Wealth and capital are working well together. The investment in our research business has benefited both the institutional revenue base and supported client and portfolio growth in wealth. And while M&A is operating in a more challenging environment, it remains an important part of our client coverage model. We've also expanded investor access to Claremont, which I'll talk about as we go through the presentation. If I move on to slide seven, through the course of the year, we refined the value proposition of the group. We have a single purpose across the business to empower client prosperity across all parts of our business. And while the offering and the client base differs across the divisions, the values that we expect all of our staff to bring to the firm each day are consistent. Client centricity, integrity, a spirit of growth and innovation, respect and inclusion for each other, and a strong sense of collaboration across the group. The intangible assets that we've got across the business, our collective expertise, the scalability of our platform, a reputation and a track record of delivering outstanding client performance and having exceptional people within our business, are all brought to bear to deliver on this value proposition. If I move on to slide eight, which summarizes the strategy of the business going forward. Now that the simplification of our group is complete, the legacy issues are resolved, the growth strategy for the business is very clear. Firstly, we will get back to delivering top-line growth. Clients and funds under advice growth and wealth are clear, with targeted business development already delivering results. We're looking at how we can expand our product offering in the wealth space. We have a continued focus on expanding our market share in our institutional business. We will continue to invest in high-quality people. We'll continue to enhance our capital markets offering, and we will continue to expand our fixed income capability. In our funds business, which is focused around Claremont, all of the focus now is on driving external client growth. Secondly, we have a clear focus on restoring value for our shareholders. That means building an annuity-like revenue growth and continuing the trend that we've seen in recent years, with the business far less reliant on transactional revenue over time. We will maintain a focus on our cost base, on improving operational efficiency, delivering the benefits of operating leverage, getting back to delivering sustainable profit growth, and back to paying distributions to shareholders over time as and when circumstances permit. Thirdly, our people are our most important asset, and we will continue to invest in them. As I mentioned before, we want to acknowledge their patience and resilience as we resolve the issues of the past, and we will continue to invest in our people to ensure that we retain and grow our talent base. We will also deliver on the diversity objectives that we've set to ensure that we have a team that reflects our community and our client base. And lastly, but equally importantly, we'll continue to enhance our product offering, particularly in E&P Wealth... enhancing the offering for our key segments in the market by extending the product suite. We'll continue to enhance our existing systems to make sure we create a consistent client experience across our core service offerings. If we turn to page nine, we're doing all of this from a strong position. So while we resolve the issues of the past, the group does not sit still, and we're in a strong position now to continue that growth strategy for the future. I won't go through all of these drivers on this page, but over the six years, we've progressively increased the client assets on a FUA-based fee, and we've increased the annuity-like revenue in the wealth business. And that stands the business in very good stead to have a predictable revenue line as we go forward into the future. While research penetration has increased, perhaps more importantly, the recognition that we've got from the market and from our client base has continued to grow. In Claremont, while the FUM in Claremont has doubled, most importantly, the number of advisors invested in that strategy has grown to over 125 external advisor groups by the end of the financial year. If I turn now to slide 11 in our full-year results highlights. Strong revenue and earnings growth in E&P Wealth and a year-on-year improvement in annuity-like revenues across all divisions helped drive an overall improvement in the second half results. For the full-year, weaker group net revenue and underlying EBITDA due to the market environment to transactional business with E&P Capital saw net revenue down 16% to AUD 149 million on FY 2023, and underlying EBITDA of AUD 2 million for the year. However, what I would highlight is a significant improvement in the second half of the year, with net revenue up 9%, notwithstanding a 30% decline in funds revenue, and second half underlying EBITDA of AUD 6.6 million, compared to a loss of AUD 4.7 million in the first half. The statutory net loss of AUD 27.7 million was driven by a non-cash impairment of 19.3 in E&P Capital that we recognized in the first half of the year. The directors have determined not to declare a dividend for the year, given the full-year financial performance, but the board does remain committed to a full-year dividend policy of 75%-85% of NPAT A in a normal operating environment. If I turn now to the divisional results on page 12 for E&P Wealth, a growth in funds under advice to AUD 29.4 billion as at 30 June 2024, with that FUA growth driven by a substantial increase in family office client balances, growth in the value of existing client portfolio, driven by solid investment performance and increased share of wallet, and a growth in full service client numbers offset reduced fixed fee client numbers. The proportion of FUA on a FUA-based fee also continued to improve. An increase in the proportion of the FUA-based fee is driven by the success of the Retail Wealth Management initiative is now complete, and we've seen new client growth on FUA-based services. If I turn to slide 13 and the financial results for E&P Wealth, strong operational and financial performance in the division with net revenue and underlying EBITDA both improves on the prior period. That reflects the benefits of the strategic initiatives within the division. Revenue growth, FUA growth, operating leverage in the cost base, all delivering solid margin uplift. We've managed to keep a focus on controllable costs to ensure that we realize operational expense savings and deliver on that operating leverage. We've got a clear focus on new client growth initiatives, centrally- managed business development team, ensuring we're focused on growth in the right areas, in front of the right people with strong collateral, and we're now, after some period of time, we're now looking to grow advisor numbers with hires made during FY 2024, and we anticipate that to continue. On slide 14, we've touched on some of the macro drivers for the wealth industry. I don't propose to go through these in any detail, but what I will highlight are the points on the right-hand side of this page. Evans and Partners has a number of distinct advantages. It has a strong established presence as a premium private wealth manager. We have the ability to advise a broad range of clients with a very scalable advice platform. We've invested in strong capability in ESG, in international equities and fixed income, an integrated family investment office offering in the not-for-profit space, and we continue to add to that capability. We have strong institutional insights through the complementary assets of the E&P Capital, in particular, the research coverage that we have across the equity space. We're building coordinated succession planning and engagement with the next generation of potential clients. Those initiatives will continue through the course of FY 2025. If I turn now to E&P Capital, net revenue was affected by lower transaction volumes across the market in M&A. However, I would highlight a significant improvement in the second half due to a pickup of activity in the second half of the year, in particular, and in capital markets activity in the fourth quarter, in particular. We certainly started with FY 2025 with a stronger pipeline and anticipate that momentum will continue into this half. We've seen the benefits of the investment in the research capability, contributing to strong growth in our institutional revenue for FY 2024, and we continue to increase the number of companies under research coverage, which is at 167 at June 2024, an increase in 18 names, June 2023. On slide 16, we've included a number of recent transactions across both equity and debt capital markets. We're clearly seeing improved quality of deal flow and client recognition across the platform. Turning now to E&P Funds on slide 17. As anticipated, the division delivered a lower result in FY 2024. This was primarily due to the wind down of the real asset funds and the rationalization of the funds business during the period, which included the transition of USF to a replacement manager in December, the wind up of New Energy Solar. As I mentioned before, the URF internalization, which was approved in June, and a partnership we entered into with investment management firm, Loftus Peak, as the new investment manager for the Global Disruption Fund. So for the business as a whole, the focus now remains on Claremont as the core equity fund, and we saw in the course of the year the launch of two exchange-traded managed funds to increase the availability of that fund strategy to external investors. As I touched on before, we now have 125 financial advice firms invested in the Claremont strategy. If I turn to slide 18, I just want to cover off on our ESG and sustainable investment strategy, which on this page is split into two key components. From a client perspective, we now have a number of ESG initiatives in train. We've continued the expansion of those client-focused services during the period, with over AUD 60 million growth in wealth sustainable products under advice. We launched the Core Sustainable Multi-Asset Portfolio in the first half of the year as a key mechanism to engage the next generation of our client base. In the corporate advisory and capital markets business, we executed over AUD 140 million worth of transaction activity in sustainable areas of climate and innovative med tech, and we've achieved strong sustainability scores in relation to our core equity capability. At a corporate level, we were very proud at the end of the year to launch our Reconciliation Action Plan. At the end of that stage, we achieved carbon neutrality with Scope 1 and 2 emissions footprint, following a full-year of renewable energy procurement. As I mentioned earlier, we launched our firm-wide diversity plan. We established a cross-divisional diversity working group to set targets and improve the outcomes across the business. And in our new Melbourne office, we brought sustainability front and center into how we thought about the fit out and the sourcing for that office. With that, I'll hand over to our CFO, Robert Darwell, who'll talk to the group financial results. Thanks, Ben, and good morning, everyone. I'll move straight to the consolidated P&L on page 20. I'll start by touching on the highlights with reference to the commentary on the right-hand side of the page, starting from the top with net revenue, which totaled AUD 140.9 million for the year, reflecting a reduction of 16% on the prior period. This result was driven largely by the lower level of transaction volumes in E&P Capital, as Ben spoke to, and the impact of the final stages of the wind down in E&P Funds. While there was some offset by the variable component of the cost base, the revenue reduction flowed through the P&L, leading to underlying EBITDA of AUD 2 million, which was materially lower than the prior year. Staff expenses were down 6% compared to last year, with much of this saving coming from lower variable remuneration, consistent with the softer top-line performance. The fixed component of the staff cost base was lower again, driven by a 7% reduction in the number of staff compared to a year prior. Now that the reshaping of the E&P Funds division is complete, we expect firm-wide headcount to stabilize at the current level of just shy of 350 employees. Operating expenses are 3% lower than the prior period, with much of this saving coming as a result of a reduced cost base in the E&P Funds division. As flagged during our half year results, we continued to invest in our wealth product to support our growth ambition, with additional marketing and business development spend carrying through the second half of the financial year. As Ben mentioned earlier, a key objective of ours is to deliver further operating efficiency across the business. While much of this will come from technology and improving internal processes, it also extends to careful management of the cost base, which has been, will continue to be a priority of ours. Overall, the group recorded a statutory loss after tax of AUD 27.7 million, driven in large part by the AUD 19.3 million impairment of goodwill recognized in the first half of the financial year. Also contributing to the loss was a series of non-underlying items totaling AUD 3.2 million, primarily comprising costs incurred in finalizing the class action settlement, employee termination payments, and one-off items relating to the exit of the real asset funds business. Moving now to the cash flow statement on the next slide. The key item of note on the page for FY 2024 is the net operating cash outflow of AUD 3.2 million. The primary contributors to this are lower receipts from customers, which are down by approximately the same magnitude as revenue, and also the payment of the DOCA Tranche B payments of AUD 3 million in June 2024, following court approval of the class action settlement. Net investing cash flows of AUD 800,000 were impacted by elevated CapEx spend in relation to the group's new Melbourne office, as well as receipt of dividends from the group's principal investments in the private equity CD Private Equity Fund Series and the CVC Emerging Companies Fund. The net cash outflow from financing activities for the year was materially lower than the prior periods. This is driven by a reclassification of short-term deposits to cash and the fact that no dividends were paid during the 2024 financial year. Moving now to the balance sheet on slide 22. At 30th June 2024, the group held cash totaling AUD 48.9 million and no debt. The cash position at June is approaching the group's annual seasonal cash peak, prior to the payment of annual bonuses in September, and includes the reclassification of short-term deposits I referred to on the previous slide. Much of this cash balance is committed or held in satisfaction of regulatory capital for the group's licensed entities. Since 30 June, the group took on a small amount of debt, entering into an insurance premium financing facility for a total of AUD 2.1 million, which will be fully amortized by financial year end. Financial assets and equity accounted investments reduced compared to last year as a result of the distributions received from the group's private equity joint ventures. During the period, the group also exited its principal position in URF and partially realized its position in the US Solar Fund as part of the USF off-market buyback conducted in June. Goodwill and other intangibles decreased during the year due to the impairment charge in E&P Capital. Right of use assets and lease liabilities increased during the period as a result of recognition of future obligations relating to our new Melbourne office lease. Finally, other assets, which mainly comprise PP&E and deferred tax assets, increased over the year due to the fit-out CapEx for our new Melbourne office, as well as higher deferred tax assets recognized as a result of the group's statutory loss. With that, I'll hand back to Ben to touch on the outlook for the company. Thanks, Rob. If I could take you now to slide 24, I'll make a few brief comments on the outlook for E&P Financial Group. With the legacy issues resolved and the business rationalization and simplification complete, we have a very clear mandate and a very active focus on returning E&P to long-term profit growth and working to restore value to shareholders. In that context, there is consideration of formally applying to ASX to delist the company. In terms of the first few weeks of the year, July 2024 trading was consistent with the improved performance that we saw in the second half of financial year 2024. We will continue to focus on the implementation of initiatives to drive revenue growth and improve operating margins. And I would note that with respect to dividends, the board's current policy remains that for a full-year payout ratio of 75%-85% of NPAT A in a normal operating environment. That concludes our full-year results presentation for FY 2024. I'd like to thank you for joining us, and we look forward to engaging with our shareholders over the coming weeks. I'll now hand over to the operator to manage any questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Once again, if you wish to ask a question, please press star, then one on your telephone and wait for your name to be announced. There are no questions at this time. I'll now hand the call back over to Mr. Keeble. Thank you, and just to conclude by saying thank you all for joining, and as I said, we look forward to catching up with a number of you over the coming weeks. The call has now concluded. Thank you for attending today's presentation. You may now disconnect.
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