Ann: FY2019 Results Announcement and Investor Presentation, page-2

Hi Everyone

These results have been a long time coming, they exceeded underlying revenue expectations of $A44M, delivered $A62.8M (notes 1a-$A41.5M + 2a-$A21.352M). Management have just met NPAT and EPS expectations. They show the underlying strength of this business in the following ways:
1) Underlying cost base is stable. When adding in acquired businesses the underlying cost base hasn't moved, generating more revenue with same cost base goes direct to Profit Before Tax. If they can stabilise writedowns we will see another exceptional year to June 2020.
2) Carlisle Management represents only a half year of revenue to be generated (acquisition Jan-2019). There is organic growth this year of about 7% or another $A4.5M in revenue, so next year is looking good already. This excludes any FUM growth. When PAC acquired Carlisle, they were looking to double FUM within one year (already well on track).
3) Another acquisition will boost revenues. Assuming similar to Carlisle Management, approximately $A40 Million paid to generate $US6 Million ($A9M AUD/USD@68c). This will boost revenues by 15%.
4) Working out GQG growth and increased contribution, we are roughly looking at an increase of $US5.5M ($US11.6B x fees of 0.9% x 5% share of fees), $A8M AUD/USD@68c. If we extrapolate and assume GQG FUM will increase FUM to $US37B (within Rajiv Jain's $US40B target), could easily see another 12% revenue growth.

This year has been a great result and with extrapolation, we should see another increase of about $A20M in revenue growth or another 32%*($A20M/$A62M) revenue growth rate. This is excluding another acquisition, add another $A6M in revenue or an expected increase of 42%* ($A26M/$A62M), $A88M revenue target.

*This assumes the dollar does not increase above AUD/USD 68c and FUM growth trajectory continues.

I believe the underlying revenue growth is where we should be looking to see where PAC will be in future. The year the company has no writedowns will see a major NPAT and share price growth, reflective of the current year revenue growth. I am particularly bullish with these results, what are other opinions out there?

Best of Luck
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