So I put together a summary overview of the reports for shareholders who attended all the Investor Presentation Roadshow in Brisbane, Sydney, Melbourne and Perth. Thanks @Kingmadd for posting on the other thread lol.
Not to be taken as financial advice, simply an opinionated summary of the opinions of those who attended the presentations from Intiger management.
Intiger Group Limited
Share Price: $0.042 Market Capital: $44m Cash: $2.46m
(with $2.27m to come from options exercised by Dec 2017)
Sector: Technology, Fintech & Services for the Financial Planning Industry
About:
The business of Intiger Group Limited (ASX: IAM), was founded by experienced investment banking and financial services executive Mark Fisher and operates an Australian software development house dedicated to supporting professional Financial Planners to meet the needs of their clients.
Intiger does this by reducing the back office and operational costs within the Australian financial planning industry. Working with Australian Financial Services Licensees and their advisers, the Intiger Group has developed and launched proprietary software platform LiLLY, which has been designed to digitise and automate core components of the financial planning process including the production of automated statements of advice.
In conjunction with LiLLY, the Intiger Group has presented the online practice management system KLIP which tracks key performance indicators of a financial planning practice and delivers oversight and control to both licensors and financial planning practices nationally.
Investor Presentation Roadshow Summary
Online Portal
The Portal wasn't a last minute thought, it's been in development for a year and has always been part of the company plan, they decided to bring it on earlier as they realised the bigger licensees are slower to make decisions.
The Portal is aimed to be fully operational within 2017 and is rapidly scalable with little to no increased costs at scalability & will help accelerate the rate of growth for IAM.
Essentially automates Intiger’s own servicing system to clients that don’t require such personal interactions, reducing cost for Intiger and clients in both dollars, time and operations.
Demand for the online Portal is very strong; there are no marketing issues for IAM, as they have extensive contacts throughout the financial industry and a long waiting list of clients already wanting Intiger’s services, strong word of mouth, industry conferences and publications.
The Portal is accessible 24/7 and provides real time tracking for clients when they start the ordering process, with a stop clock on the screen.
Intiger’s Cebu offshore processing office was opened exclusively to manage the demand from the online Portal, this location was chosen as it is significantly cheaper in building costs (rent, maintenance etc.) than the previous selected location.
The online portal will provide scale. Lilly is a full service offering aimed at licensees, while the online portal is aimed at individual practices and practices under licensees who have not yet got licensee approval for Lilly.
Lilly is time consuming to implement into each business because it requires practises to change their processes. The online portal requires no implementation and makes ordering a statement of advise as easy as ordering a dominos pizza. Hence the low cost growth potential.
Mark Fisher said some licensees due to the size of their company could take a significant period of time in making a decision. Hence, it is better to offer an online solution that goes directly to each advisor, with a fixed price, available anytime, they come to IAM, and hence the portal is direct to the market.
The portal is currently being trialled with practices and it is for everyone, big, small, not just the 40% non-aligned.
Trading Halt Company Debacle – 4th May 2017
Discussions Re-Opened this week
ASX stepped in to say that Intiger could not keep the name of the client confidential, this clears up a lot of speculation that it wasn’t the potential client walking away or Intiger walking away, but rather regulation red tape from the ASX.
Intiger have since re-opened discussions when Mark Fisher was in Sydney, and he stayed back rather than fly to the Melbourne Seminar, in order to meet with the company.
Patrick Canion also met with the chairman of this company in Sydney, that chairman is happy with Intiger and work is continuing.
Discussions are working towards a potential deal, this company had been through a complete pilot program with Intiger that shareholders were unaware of.
This company was not MOU2 and wasn’t Sentry or NAB.
They are working with the client and ASX to come to some way of maintaining the anonymity of the client and appeasing the ASX regulators.
When they have something material to announce they will do so.
Sentry Pilot Complete
Pilot is complete and they are in discussions on how to push forward together, Sentry have been very happy with the pilot and IAM has received all positive responses and feedback.
IAM will announce something soon on Sentry.
Sentry practices are now free to engage with IAM on their own accord, including the Portal.
NAB Trial Complete
Trial with NAB is complete and they are in talks on the next step forward.
Intiger’s Own Data Cable
Intiger have their own private data cable, which means data can't be hacked/stolen and increases security for client data. It's an expensive investment and another reason why it would be hard to compete, because it's a lengthy operation and it's been in place since Intiger listed on the asx.
Clients Signed
IAM have increased clients signed to the last asx update of 18 clients currently signed and 100% take up from all 18 clients (practices).
Sentry Group has 6 practices signed up of the 18 practices (clients), with ipacWA and ipacSA each as one client respectively.
Performance Shares Milestones $40mNPAT
Patrick stated in a recent interview with Peak Asset Management (interview link available via IAM ASX announcement) that they are working to the 30 June 2019 timeline and to the targets of the performance shares milestones, which is based on cumulative Net Profit After Tax (NPAT).
M1 - $1,000,000 cumulative NPAT 30 June 2019
M2 - $4,000,000 cumulative NPAT 30 June 2019
M3 - $11,000,000 cumulative NPAT 30 June 2019
M4 - $40,000,000 cumulative NPAT 30 June 2019
Mark Fisher has an immense incentive to achieve these milestones, given he stands to gain (or lose) 880 million shares if all four milestones are achieved, where as right now Mark, the founder of Intiger only has a 37.5 million share holdings, giving him little to no ownership of his own business.
LiLLY
LiLLY is the first software in Australia to Digitise and Automate the Financial Planning Lifecycle.
LiLLY replicates exisiting Back Office & Paraplanning processes in a digitised environment, eliminating the manual processing and the time & cost of SOA production.
Significantly reducing turn-around times, cost to produce SOA’s and production risk, LiLLY delivers unparalleled improvements to financial planning practice’s productivity, margins & profitability.
Eliminates the manual, paper based process currently used by financial planners and LiLLY provides digital automation.
The software LiLLY is now ready to be rolled out; it is currently being used by a number of practices that are already signed with Intiger.
Clients that use LiLLY are charged 10%-12% of their monthly admin services fee.
COIN has been the closest to mimicking LiLY but still requires 6-7hours of human intervention, while we were given a live demonstration of LiLY took about 20seconds.
COIN is still not a competitor rather a partner/compliment to IAM.
LiLLY is proprietary software that Mark Fisher helped write the code for and is secured and owned by Intiger.
MOU2/MOU3 +
Intiger are on good terms and continuous contact with MOU2 and the other MOU deals in the works (mou4, mou5, mou6 +).
Patrick Canion and Mark Fisher along with the MOU2 company are both in regular contact with each other. The MOU2 company has already completed a trial that was successful and they are very happy with Intiger. Intiger is discussed at their board every month, the main stumbling block is them being named publicly, once this can be resolved things will press forward even more.
The Online Portal will go along way with allowing all these MOU deal companies to become clients and utilise Intigers’ services until the naming hurdle can be resolved with the ASX/ASIC.
Either way both parties win with the Online Portal, which may make signing a MOU irrelevant in the grand scheme, the portal was always going to be needed anyway to service clients sufficiently.
General Information
- Xplan is not a competitor; Mark Fisher has a good relationship with them.
- Intiger have 73 employees globally.
- 10 staff in CEBU and Intiger will be looking to hiring 10 a month for this office.
- Intiger enters into long-term contracts with employees.
- Online portal is pay as you go, like ordering a Domino’s pizza, simple to use and it is scalable without increased costs to Intiger as it is accessible 24/7 by clients & open to all client sizes.
- Portal gets around the ASX regulations of disclosing all client names.
- Intiger are working with the ASX & ASIC about coming to a resolution regarding naming of clients.
- Demand for Intiger isn’t an issue, clients are lining up; it’s meeting this demand in sustainable way that maintains the high quality services the Intiger provides.
“No problem with demand, demand is ridiculous” quote Mark Fisher
- Intiger could service multiple hundred advisors currently.
- Enough money in the bank and with projected cash flows, along with options being exercised this year, so no need for a near future capital raising in current circumstances.
- The portal will provide good cash flow as when a client orders something one of the first things it does is charge the clients credit card along with alerting the offshore team.
- Intiger are capable of servicing multiple hundred of advisers currently
- The next quarterly and those after will start, key word START, to show and reflect the progress Intiger has been making, with the increased client signings. Sentry practices were not included in the last quarterly revenue; this will be reflected in the June quarter.
- Intiger will limit naming clients, unless said client is happy to be named, rather the focus will be on market updates of client number signings and number of processed orders.
Thanks to everyone who attended all the presentations and kindly provided their feedback and thanks to management for conducting the Investor Presentation Roadshow.
(20min delay)