25% increase on 4cps dividend = 5cps. Approximately $7m NPATA I would also suggest at least another $1m interest income from cash balance (>$30m)
Furthermore, AMP and IFL are losing advisors rather quickly, and a shift of AFSLs within IFL will likely cause more to leave. DVR are still in the midst of takeover offers, likely their main focus at the moment.
WTL also integrating a rather ordinary acquisition by all accounts.
"Sequoia Group again top the week’s growth for licensee owners with 5 advisers. It appears that a self licensed AFSL, Poynter Hargraves Financial has called time on their AFSL and moved across to Interprac"
Finally, we've hit the trough on advisor counts (from what I can tell), as all requirements for education/experience are now in force. I expect counts to go up slowly from here. And because of this drop in advisors, I also expect advice to cost more. As the Licensee Services division operates on a % of revenue, their take should increase.
I think it's 50/50 for an upgrade on that $7m NPATA before EOFY.
SEQ Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
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