SFG AUSTRALIA LIMITED (SFW)



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General Information
Company Name: SFG Australia Limited
Stock Code: SFW
Website: www.sfgaustralia.com.au
GICS Sub-Industry: Other Diversified Financial Services
Market Cap ($M): 481
Equiv. Shares (M): 735

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.600 $ 0.630 $ 0.630 $ 0.600 $ 0.655 50,549 $ -0.055  -8.397 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 31st Aug 2012
12 Month Target Price (average): $0.47
Brokers Surveyed: 1

Company Overview

Business Description:
SFG Australia Limited (SFW) provides wealth management services to high net worth and affluent clients, including strategic financial advice, portfolio administration solutions, portfolio construction and management services, insurance (both general and risk) solutions, finance broking, stockbroking, and corporate superannuation services. SFW operates its businesses in Australia and has three financial advice models: End to end adviser model; Affiliate adviser model; and B2B Services model.

Strategy Analysis:
Snowball Group is focused on continued organic growth from both Western Pacific and Outlook advice business as well as recruiting selected advisers in both channels either from within or externally. In addition,, the company focus on wholesaling the advice model to affinity partners seeking advice solutions and services to corporation, credit unions and the industry & public sector funds. The company also remain committed to growing by acquisition and merger via a number of possible opportunities including tuck-ins or bolt-ons to the existing Western Pacific and Outlook advice businesses, the addition of separate but complementary advice businesses and vertical integration in areas such as portfolio construction or other appropriate product packaging lines of services that benefit the advice customers.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A 24.3 3.3 -25.0 10.7 2.0 5.6 100.0
2011  A 23.3 4.4 83.3 8.8 2.5 6.4 100.0
2010  A 3.7 2.4 -20.0 17.2 3.3 8.0 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
IOOF (IFL) $1,752 M -0.1406 0.1266 0.1283 18.2809 16.2261 14.3810 0.0490 0.0548 0.0608
Macquarie Group (MQG) $14,118 M 0.2165 0.2968 0.1620 16.8834 13.0190 11.2043 0.0481 0.0564 0.0636
Perpetual (PPT) $1,665 M 0.1615 0.1178 0.1819 23.5833 21.0980 17.8504 0.0227 0.0297 0.0421
Platinum Asset Mgmt (PTM) $3,138 M -0.1447 NaN 0.1843 24.1226 24.1119 20.3600 0.0387 0.0386 0.0469
SFG Australia (SFW) $485 M -0.2448 -- -- 19.8198 -- -- 0.0303 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
SFW 1.40 19.7 3.14 --
Market 0.94 12.5 0.82 1.91
Sector 1.07 17.9 1.08 1.23

Directors
Name Position Start Date
Mr James Patrick Kilkenny Executive Director 26 June 2011
Mr Eric Dodd Non-Executive Chairman 02 July 2010
Ms Naseema Sparks Non-Executive Director 27 March 2012
Mr Graham Maloney Non-Executive Director 14 December 2009
Mr Peter John Promnitz Non-Executive Director 26 June 2011
Mr John Bryant Gannon Non-Executive Director 26 June 2011

Management
Name Position
Linda Fox Chief Financial Officer,Joint Company Secretary
David Pitcher Head of FinHQ
John Cowan Head of Products, Services and Business Acquisitions
Nick Bedding Head of Shadforth Financial Group and Outlook Financial Solutions

Substantial Shareholders
Holding Name
66,197,469 (9.07%) Kevin Christopher Bailey and Grace Genevieve Bailey

Calendar of Events
Date Event
27 February 2014 Report (Interim)
26 September 2013 Report (Annual)
29 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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