ASX Announcement & Media Release

Transcription

1 ASX Announcement & Media Release 8 November 2013 MDS Financial Group Limited ACN Annual General Meeting Presentation Level 37 Rialto South Tower 525 Collins Street Melbourne VIC 3000 T: F: asx@mdsfi nancial.com.au nancial.com.au MDS Financial Group Ltd (the Company ) is pleased to provide the attached market update presentation ahead of today s Annual General Meeting. ASX Code: MWS Directors Wayne Johnson Chairman and Executive Director Richard Symon Executive Director Jamie Khoo Independent Non-Executive Director Peter Stirling Independent Non-Executive Director Wayne Johnson Chairman END ABOUT MDS FINANCIAL GROUP MDS Financial Group is a full-service corporate advisory and capital markets specialist with clients in Australia and the Asia-Pacifi c region. The Company is listed on the Australian Securities Exchange Ltd (ASX), and has three licensed subsidiaries. One of its licensed subsidiaries is an ASX market participant, with institutional and third-party wholesale brokerage facilities underpinned by substantial retail online trading and market data services. Secretariat All market announcements are available to view at nancial.com.au/asx and at Andrew Phillips Company Secretary million listed shares For more information please contact: Wayne Johnson Chairman MDS Financial Group Limited Phone: Phone: Andrew Phillips Company Secretary MDS Financial Group Limited Phone: Phone: Page 1 of 1

2 MDS Financial Group Limited 2013 Commercial in Confidence Strategic Direction Overview Annual General Meeting 2013 AGM Strategic Direction Commercial in Confidence ASX: MWS

3 Disclaimer MDS Financial Group Limited ( the Company ), its related entities, and their directors, officers, employees, representatives and agents do not warrant the accuracy, reliability or completeness of information contained in this document. To the extent permitted by law, the Company, its related entities, and their directors, officers, employees, representatives and agents disclaim all responsibility for any loss or damage arising in any way from any representation or any error or omission in the information or from any resulting loss or damage (whether direct or indirect) suffered as a result of the use of this material by any person. This information is for general information purposes only and is not intended to be relied upon for the purpose of making an investment decision. The information does not constitute an offer of any financial product or an invitation or solicitation to buy or sell financial products including securities to any person. Potential investors should seek independent financial and taxation advice before making any investment decisions. To the maximum extent permitted by law, the Company disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this document. Any individual reading this should discuss, with their financial planner or advisor, the merits of any recommendation or offer presented in this material for their own specific circumstances and realise that not all investments are appropriate for every individual. This information includes forecasts, projections and other predictive statements that represent the Company s assumptions and expectations in light of currently available information. These forecasts, etc., are based on industry trends, circumstances involving clients and other factors, and they involve risks, variables and uncertainties. The Group s actual performance results may differ from those projected in this document. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein. Past performance is not a guaranteed indicator of future performance. The information provided within the document is not intended to be a complete description of matters described, and should not be relied upon for any purpose. If you require further information about any of the matters described in this document, please contact us. Except to the extent permitted by law, the materials contained may not be reproduced, distributed or transmitted or incorporated into any other document or material, without the express written permission of the Company. The Company has made every effort to ensure the reliability of the views and recommendations expressed in this material. The information presented is based upon information known to us or information obtained from sources external to the Company, which we believed to be accurate and reliable at the time of publication but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. The Company, its related entities and their directors, officers, employees, representatives and agents will be entitled to fees in relation to any involvement in corporate matters and provision of financial services and disclose that they/ and / or associated entities may hold securities in the company the subject of a corporate matter or potential financial services transactions and that their holdings may change from time to time. Financial Services are provided by MDS Financial Services Pty Ltd (AFSL No ), D2MX Pty Ltd (AFSL No ) and Trader Dealer Online Pty Ltd (AFSL No ).

4 Key Business Information MDS Financial Group today provides securities & investment services to retail and wholesale clients, including: Corporate advisory Institutional and third party wholesale brokerage facilities Wholesale trading and software licensing Retail online trading Market data and analysis software Trading education Operating six subsidiaries, including three AFSLs AFSLs

5 Strategic Objectives Board Statement In 2013 MDS Financial Group has undertaken a push to add strength, stability and expertise to the Board of Directors. Following the change of Chairman in January 2013, the Company introduced two significant investors and a new non-executive director. With these changes and a newly energised executive team, the Board has developed a strategy to deliver growth across the Company in a systematic manner, mapping a clear path forward and cutting inefficiencies. In the coming months the Board expects to announce details of various strategic relationships and operational activities which are expected to add to the Company s scale and value. These details will be provided at the appropriate juncture. The Board is ever mindful of enhancing shareholder value and provides the following overview of the Company s strategic direction to give shareholders an insight to the objectives of the Company for the next six months. The Board thanks shareholders for their support, and looks forward to leading the Company through this rebuilding and refreshing period focused on profits and shareholder value.

6 Strategic Objectives Growing the Australian Trading Business Strengthen the balance sheet to attract new operating relationships and to increase our bond for transactions to support a materially higher turnover through ASX, as required by ASIC S1A rules. Consolidate all subsidiary businesses under one strong brand. Improve net margins on trading, including adding OTC trading capability such as CFDs directly through the d2mxiress platform. Fully develop and enhance the d2mxiress trading platform to increase market share of the online trading market. The focus is now on this platform, having fully impaired $1.3m of the repealed trading platform development project, Project Africa. Engage new and highly-regarded management personnel to attract larger local and international institutional traders to transact through D2MX. Increase the number of wholesale traders signed on to the wholesale platform. MDS is currently in discussions with several trading groups to add to the thirteen active groups already trading though D2MX. Recruit staff to service demand and meet growth objectives, primarily revenue-generating traders and/or advisors where MDS margins are enhanced, i.e. no longer focussed on volume but on delivering services that add value to both the customer and our Company. Establish strategic partnerships, such as the developing relationship with Sequoia Financial Group Pty Ltd, to provide benefits of scale and the cross selling of services to multiple data bases, increasing revenue.

7 Strategic Objectives Asian Regional Expansion Export our proprietary education, charting and data solutions to commercial clients in Singapore, Malaysia and China, (now progressed and leveraged through the paid Corporate Advisory work taking place in Asia). The Company has been developing strategic relationships with established operations and networks in Singapore, and is building a presence in China where urbanisation of the growing middle class is driving demand for wealth creation. A Chinese version of the d2mxiress platform is available and may be launched through a joint venture relationship now in development. Growth of the Corporate Advisory business, driven by increased M&A activity in the private and public sector, and by access to the growing Chinese ASX IPO market. This access has been enabled by the Company s lead management of the Sino Australia Oil and Gas Ltd IPO and by a recent visit by representatives of the Daqing Government to Sydney, where agreement to proceed on several transactions taking place in the next 12 months has been reached. Acquisitions Grow the business through strategic acquisitions which add shareholder value to the Company. Note, shareholder approvals will be sought going forward.

8 Financials 2013 Financial Year MDS Financial Group experienced a NPAT loss of $1.6 million in 2013, a 44% improvement on the NPAT loss in 2012 of $2.9 million. Revenue was down by 25% on This was the result of difficult market conditions, however new wholesale and institutional clients were secured and there was an increase in retail account openings which should flow through to the new financial year. Corporate advisory revenue has increased by 42% over Corporate advisory and software / data subscriptions have a primarily fixed cost structure. By utilising the current company structure we anticipate improved performance results for 2014 from these two divisions due to improved operational efficiencies and deal flow through corporate advisory mandates. In 2013 we restructured the company and we expect to take full advantage of operational improvements in Market guidance for 2014, based on the Board s explained strategy (described above) provides a projected NPAT for 2014 of $481,014. The projected result for 2014 represents a turnaround of $2.1 million in NPAT from The 2014 projection requires the support of all stakeholders as we get the Company back in the black and in acquisition mode with new potential funding lines and strategic alliances.

9 Corporate Advisory Our Corporate Advisory division specialises in serving mid-market listed and high growthpotential private companies across resources and mining, agribusiness, financial services and information technology. Our Corporate Advisory team provides advice to our clients on: Management of listings on the ASX for IPOs and capital raisings Business strategy development & strategic alliances including marketing Corporate governance and process including investor relations Corporate restructuring, defensive strategies and succession planning Facilitation of joint ventures, mergers, acquisitions and trade sales Private equity transactions Optimising capital structure, financing

10 Institutional Broking Operated through our wholly owned subsidiary D2MX Pty Ltd, the institutional broking business unit provides trading and electronic settlement to high volume institutional trading clients. Executing equities and ETO transactions for investment, mutual and hedge fund managers, dealer groups, family offices and very high net worth individuals. The unit currently services 25 institutional clients with 351 active accounts. All institutional equity and derivative trades are executed via the ASX s live trading platform (IOS Plus OTW), ensuring that our brokers have access to the latest market information. Institutional clients can elect to execute equities and derivatives orders directly on the ASX via the D2MX DMA (Direct Market Access) execution platform.

11 Wholesale Broking D2MX Pty Ltd offers a white labelled trading platform and broking service for wholesale customers, enabling a seamless trading solution for their clients. Direct Market Access (DMA) for wholesale clients, such as: ASX Market Participants without a trading platform, clearing facilities or other white label solution AFSL Holders including Corporate Authorised Representatives (CARs) A full white label solution, including: Branded trading platforms, applications and client-facing documentation Charting and analysis software providing trading or enquire-only access for clients Unlimited access to the D2MX trading desk, staffed by qualified DTRs with expertise in both cash equities and ETOs A dedicated transition team to take the strain out of moving client business Support of all CMTs and margin lending products IOS support for both local and international clients utilising a wide range of platforms for execution on the ASX

12 d2mxiress Trading Platform The d2mxiress platform combines the latest IRESS technology with the advanced charts and analysis features of our proprietary D2MX Trade Tools plug-in. Online trading access with real time ASX shares, options and warrants information Advanced Charting Engine Analysis Tools With 70+ indicators in the d2mxiress platform, clients can use technical indicators, chart tools and trade alert signals to find their next trade idea. Allows clients to scan the ASX market by price patterns, technical indicators and pre-alerts to quickly find stocks meeting their trading criteria. Back Testing Tools Allows clients to back test their trading strategies against historical data to see if their theory would result in a profit or loss, then adjust it accordingly. d2mxiress is currently used by over 2,500 paying subscribers.

13 Wholesale Software Licensing d2mxiress has the power to be rebadged for easy integration for wholesale clients. Wholesale software licences are available to brokers, financial advisors, share trading educators and others looking to provide their clients with an industry-leading online trading tool. In addition to cutting edge software, our wholesale software customers enjoy: Optional white labelling, placing their company logo within the software Access to our customer support team for clients and end users Frequent free software updates Competitive wholesale rates

14 Retail Online Trading Online trading services are provided under license through Trader Dealer Pty Ltd, delivering online and phone execution-only services for active clients trading ASX equities, warrants and options, plus over 500 clients channelled through the D2MX General Advisory division. Our clients are generally sophisticated investors and active traders, choosing our offering for the cost-effective brokerage and personalised service. Clients get rapid direct market access using the d2mxiress order pad to place trades. Online trading has increased again over the last six months, with a significant increase in contract notes since July 2012 indicating a number of active traders having resumed trading after a decrease in the local Markets during the previous 12 months. Award-Winning In recent years our retail trading services have featured in several industry awards. Best of the Best 2013 Investing, Money Magazine 2 nd and 3 rd Cheapest Non-Advisory Phone Broker Best 5 Brokers Survey 2012, Australian Financial Review, Smart Investor Magazine 4 th Best online broker for high-volume, experienced traders 5 th Best online broker for intermediate/moderate volume traders Editor s Choice Best Platform Provider 2012, Your Money Magazine Gold Medal Best Online Broker for Heavy Users 2011, Your Money Magazine

15 General Advisory D2MX is redeveloping a team of advisors offering general advice on trading and investing to High Net Worth clients with a focus on sophisticated and professional investors (s708 CA). This is a reinvention of a division which provides the company with skilled value-adding personnel which complements the Corporate Advisory business with distribution while delivering increased revenues at higher margins. General advice is provided on ASX shares, options and warrants, with clients able to a personal advisor to assist with their trading and investment needs. D2MX Daily is a daily newsletter featuring a review of international and domestic market news, current prices and trading recommendations on shares, options and warrants. The Advisory team also manages model portfolios positioned to weather market conditions and benefit from upswings, while accommodating various attitudes to risk.

16 Further Information Securities Trading Services ASX: MWS