My key attraction to MWS is the $1.3b Funds under advice that it controls, and the revenue and profit it should be able to leverage from this FUA. Now admittedly, it is not clear as to which of the various MWS platforms these funds sit under, but looking at some broad metrics can give an indication of the profit potential, if this FUA is leveraged efficiently:
MWS:
Funds under advice: $1.3b
600+ SMSFs managed
$27m revenue
$2m EBIT
$8m market cap
SFL: (Spring Financial Group) - lists on ASX tomorrow - EMERGING BUSINESS - Say 6 - 12 months ahead of MWS
Funds under advice: $330m+
300+ SMSFs managed
$16m revenue
$7.5m EBIT
$35m market cap (at IPO pricing)
FID - MATURE BUSINESS
Funds under administration: $1.2b
$20m revenue
$6m EBIT
$60m market cap
Now while the business models are all slightly different, they are all broadly driven by superannuation flows / SMSF and investment markets.
Assuming MWS can get its business running efficiently there is substantial potential upside here, but it will take time.
SEQ Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
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