The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Just a couple of questions starting on the IBA transaction. That 14x multiple you quote, I think that's on '23 EBITA. Just looking at the charts on one
of the slides, it does seem to be quite a strong growth expectation in EBITA from that business into '23, probably north of 25% just based on the
chart. So just wonder if you can talk about how confident you are in that growth outlook for that business given it is obviously a lot stronger than
the organic growth you're talking more broadly across broking and agency.
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Okay, Rob. And the margins in that business are a bit below sort of what you're achieving in your own broking and agency channels currently. Just
wondering sort of why that's the case, and therefore, if there is potentially a larger synergy opportunity there down the track?
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: And your -- sort of just stepping back more broadly to the trends into your own EBITA margins through FY '22, further expansion in both broking
and agency margins. Where do you see sort of the natural ceiling, if there is one, if you think about it that way in both those segments, particularly
given the war on talent you talked about?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
AUGUST 17, 2022 / 12:30AM, SDF.AX - Full Year 2022 Steadfast Group Ltd Earnings Call
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: And with sort of the wage growth, I think you alluded to in your commentary, Stephen, on the outlook, the margins in both those sectors -- segments
for '23, just given the strong sort of revenue growth backdrop we're still in, sort of what -- is the broad expectation that fairly stable over the year
ahead, notwithstanding the higher cost pressures?
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Okay. And just one final question on the Trapped Capital Project, the $400 million identified of which you're planning to execute on $220 million
this year and FY '23. Just looking at the pie charts you've put out, which are quite helpful in regards to your own network, sort of probably takes
you closer to 50% equity ownership if you execute on the $220 million and post IBA through the course of '23. So out of sort of the remaining
50-odd percent of the network, I mean, how much down the track is still do you regard as a viable sort of potential pool of opportunity for yourselves?
|
