Hi first time poster on this one. Trying to get my head around this (brilliant) sounding business model. Perhaps I’ve not been looking hard enough, but this is the first Australian listed company I’ve come upon where the CEO (and founder) resonate with me at such a strong level. Questions I have and sorry if they sound basic, but that’s the sort of being I am.
1) On page 16 of the 1H22 presentation it mentions in the right column that POD financial return is via various elements including KPG shares – do they mean they can buy shares given they aren’t granted any in the acquisition model? (I like the idea that shares on issue has not expanded).
2) how/what mechanism do partner exit or join each firm? (I know some or all have signed 10 year contracts - so their typical age must be 40’s-50’s). Do they sell part of their 49% back to the firm?. Like wise how do they buy into the business?
3) distributions –they receive monthly via KPG related entities, but what about the 49% they own, is that profit they keep? By that I mean if their company does very well they could get more profit than another company in their network that does poorly.
4) any reason why the CFO is in HK? They not looking to expand there (was asked in 2022 H1 presentation)?
5) with respect to KeyMan risk, until Brett can show who successor is – I also have concerns (but not enough necessarily to stop me from seriously looking to buying at the right price.). To me this is about multiple expansion – and Brett said that as much early in the presentation. Yikes, this is thinly traded.
KPG Price at posting:
$5.20 Sentiment: None Disclosure: Not Held
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