I suggest for anyone interested to take the time to listen to this and to all the others, previous ones have a substantial more in depth discussion and business updates, so if you've missed them have a listen.
Happy with the interview, some good information provided on intiger's business.
Once again re-affirming that demand is there.
The ATS (Accounting & Taxation Services) as stated before was implemented at the request of existing clients.
These clients also have accounting work and asked Intiger to help them reduce the repetitive people intensive tasks & help reduce their costs, increasing their efficiencies in the same way that's been done to their financial planning work.
Mark Fisher looked at it for those clients and said yeah we can just plug that in, there was some learning from both sides but essentially a straight forward application of Intigers systems & services.
Opportunity is there in similar High-Volume industries, where they need to be exact and compliant.
Intiger are NOT taking focus away from their core business of financial planning services.
Rather Intiger (IAM) are taking advantage of opportunities that are there and continue to arise from client needs, to increase their revenue & diversify revenue streams.
These other industries also face greater margin squeezes, so with a few tweaks of Intigers existing systems they can provide their services to these industries where IAM can make an even bigger difference.
Pretty good thing, if as was said it's not a complex adjustment for Intiger to provide their services to other industries then why not branch out, diversify and increase revenue. More revenue is always a good thing, especially if it's from areas previously not factored into the business development and growth.
This will allow increased scaling of Intiger's business very quickly.
Compliance: Intiger's system & with the Online Portal doesn't allow non-compliant work to be completed.
Online Portal
Patrick's words: Optimistic!
Portal is Complete!! Working!
Testing of Portal is Done!
Clients are already using in a "soft launch"
Release/Launch Date of Portal by end of July, latest 1st week August
- Timing of release nothing to do with not working, rather it's co-ordinating with marketing.
They are no working on completing the supporting material, aesthetics, marketing and PR of the Portal.
Intiger want this all correct and to have clients happy with the Portal.
The Portal is easy, straight forward.
Any financial planner can order any back office system work (such as SOAs)
Guaranteed fixed price
Guaranteed turn around time
Pay as you Go/Need - Put your order through, takes you to your paypal, pay through paypal/credit card and done, you know your order will be back in "X" time guaranteed and it's very precise.
ASX announcement will come first when the Portal is launched, with a link to the portal for shareholders and potential users to have a look.
Orders can't be placed until all required information is provided by the financial planner.
Planners can audio dictate file notes straight into the Portal System.
Planners can have sections of the form orders emailed to clients to fill in if needed and they do it online.
Quarterly
Patrick is Happy!....
Because....
They Reverse Engineered what sort of Revenue Intiger and more so Mark Fisher need to achieve with the sort of margins to reach those Performance Milestone targets of cumulative NPAT by 30 June 2019:
$1mNPAT
$4mNPAT
$11mNPAT
$40mNPAT
Didn't go into specifics but as in previous interviews and re-affirmed in the latest, the margins in their pricing are there for Intiger to achieve all four milestones.
They worked their way back from 2019 the Percentage of revenue Growth to achieve M1-M4
Margins & growth aren't going to be linear over the next couple of years.
They know the Minimum revenue Growth Rate needed each quarter on quarter and This Quarter they have achieved that.
Still on track to achieve M1-M4 despite what "experts" with no knowledge of the business continue to say they won't purely based on their "opinion".
Intiger to provide an Activity update with the 4C or maybe a day before, they are still working on all of that.
Patrick is happy with the Cash Receipts.
Going Direct to Licensees and Practices is still important to intiger.
Referral system now in place with some firms, which is good for both parties.
Intiger are billing clients with a profitable margin.
On Target to achieve their Goals (i.e. M1-M4)
More Processes Completed
Experimenting with some pricing and packages:
- Currently clients order process by process.
Interesting thing - Patrick's words
- Some just order the SOA
Intiger wants all of their business
Looking and trialling different pricing and packaging strategies which are all inclusive of margins to achieve M1-M4 (no loss leading).
- Just to see if they can accelerate the percentage of total administration work that Intiger does for each practice, rather than the practice still doing some of the work.
Client Reactions
Reaction 1: ( I see this as the least adaptive and wanting to change, struggle to stay in business/grow)
If they move all of their admin work to Intiger, they have to re-train people for other positions or let some people go, which some don't want to do.
So they just send their current outsourced work to Intiger and reduce costs.
Rection 2: (Progressive with the changing business world and the world itself with technology)
ipacWA - Patrick decided for his practice; let's change the business around, keep the people but have them do more productive work that benefits his business.
Reaction 3: (Progressive and forward moving as a business)
THIS IS GREAT! I'm going to make all my back office staff redundant, bar one and send everything to Intiger.
Intiger are keen to show businesses how they can adapt their business to keep quality people but have them do more productive work.
Intiger are looking to introduce pricing packages that encourages business to send greater amounts of volume of work, that's fantastic (Patrick's words)
Intiger are helping practices & licensees with adapting to the changes coming to the financial planning industry and with the change to using Intiger's services, which some find the impact of change in general a little difficult, but Intiger have observed this and are helping with that.
Patrick said he's interested to do another Podcast interview likely in a month after the Portal Announcement, Quarterly.
All in all it was a good interview, thanks Patrick for taking the time and for IAMLTH.com for putting it together.
Link here to interview, with all the other interviews there too including with founder Mark Fisher and with Peak Asset Management, very worth while listening to them all, even re-listening:
(20min delay)