(slide 17) 14% market share in the mid-large self-licensed space. Self-licensed implies CAF carries zero risk as the underlying party holds their own AFSL. This segment is growing by double-digits.
(slide 32) No new claims beyond petty negligible claims
(slide 28) Funds Management and Advice EBITDA grew by 33%. As markets have risen in 2019, EBITDA should exceed $5.6m for the full year ($2.8m x 2).
(slide 27) compare this to the prior period. The 'self-licensed' network has expanded significantly to 2,370. This is attractive "no-risk" revenue.
Grandfathered commissions will run down, but new fee structure for the above network will kick in.
Using a SOTP (Sum of the parts) approach:
Cash $7.4m Remaining provisions ($1.8m) Receivable from Neos $6.3m 1. Sub-total = $11.9m or $0.079 per share
2. Ventura at 6x EBITDA = $5.6m x 6 = $33.6m or $0.22 per share
3. The "no-risk" self-licensed business that is growing by double-digits and commands 14% market share? $30m or $0.20 per share?
4. The AR business. For simplicity and conservatism, let's just say zero.
1+2+3 = $0.50 per share implying +284% upside.
CAF Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
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