Ann: Full Year 2021 Results Presentation, page-13

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Book keeper96

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19/02/22

17:08

Post #: 59680837
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Originally posted by Buttons7: ↑

Agree on all counts. And thanks for the info on HUBconnect and MyProsperity.

Just to clarify, most of the points I made (corporate costs, accounting flat, advice practices etc) were flagged at the AGM. I wasn't coming up with anything original, just making sure you were aware of what was presented. Presso here:
https://www.asx.com.au/asxpdf/20211118/pdf/4533tjkvmln2qs.pdf

I probably came across too negative on the capital allocation. Kevin is a thoughtful capital allocator and having him as chairman and a significant shareholder gives me a lot of confidence.

I'm pretty sure they are thinking about investing directly into advice practices. My memory of the AGM was that this was mentioned. And there is a bullet point on page12:

I guess there's an opportunity to buy up a lot of earnings in a highly fragmented market at very low multiples.
I just personally much prefer the training and licensee businesses.

For me the smartest deployment of free cash flow would be:
1/ keep growing the businesses we have organically;
2/ find bolt-on licensee acquisitions to build scale (similar to Paragem); and
3/ buy back shares by tender offer (giving Greg and other large holders liquidity and an exit)

I understand that this is super boring and doesn't make a lot of sense for a listed company as it would worsen the liquidity.
I get that they want to grow the market cap and liquidity. And (as per my previous post) I really like most of the plans for building scale.

Bottom line is I think we have:
* some great businesses
* promising opportunities for organic growth and aquisitions;
* price of less than 10xNPATA
Best opportunity I can see on the ASX.

Thanks your thoughtful posts, you've given me the impetus to have another look at Australian Family Law.

Expand

Great stuff @Buttons7. Should you feel the need to contact me, I actually am MUCH more active over on twitter here - https://twitter.com/Tristanwaine and write memo's on investing here - https://hurdlerate.substack.com/.

I have yet to do a DVR memo, but I am looking to put one out around the time of results.

Last edited by Book keeper96: 19/02/22

DVR Price at posting: $1.01 Sentiment: Buy Disclosure: Held
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