News of a loosening of laws relating to financial advice.

This will allow banks, and super funds to offer financial advice.

The CEO re-iterated the medium term goal of achieving $400 M revenue by FY 2025.

This is significant growth, and even if they significantly miss this goal, say achieving just $260 M by FY2025, Sequoia will be a significantly larger business than today.

DISC - I HOLD

Management have provided guidance for the HY to Dec 21:

1) Revenue up 20% to $63 M for HY 2022.

2) NPAT of $2.1 m, up 23.5% for HY 2022.

Overall guidance given for FY2022 is for EBITDA growth of more than 15%.

Trading on a forward PER of 13, assuming NPAT growth holds over FY2022.

DISC - I HOLD

Sequoia Financial Group's CEO is guiding for 15% organic revenue growth.  I think this is a reasonable expectation, with my personal experience operating a professional services business.  IMO this is low ball guidance.

Approximately $4M of 2021 profit has been set aside for acquisitions, with the aim of acquiring further businesses to improve & grow the professional services division, with an interest in aquiring insurance brokers.   

Sequoia aim to acquire businesses at 3-4x EBIT multiple, so acquisition will possibly add $15 Million in additional revenue ($1.2 M NPAT).  

Given this, I think FY2022 revenue of $150M is likely, with NPAT of $8 M.   That equates to an EPS of 5.7 cents for FY2022 (allowing for 10% share count increase).  

DISC - I hold

Sequoia Financial Group released an upgrade to profit guidance for FY2021,   with EBITDA guidance upgraded to $11 million from $8.5-9 million.

Revenue guidance has been upgraded to $110 to $115 million.   

Upgrade is based on May 2021 accounts, leaving room for slight outperformance in the final month.  

DISC - HELD.

Trading halt was due to an upgrade.  

Full Year guidance increased to $110-120M ($110 M previously).  

EBITDA upgraded to $8.5-9 million (25% increase).   

Management report VERY STRONG pipelines in place to support continued growth momentum into FY22.

CHEAP CHEAP.

DISC - I HOLD

Tranche 3 of performance rights have the following performance hurdle:

Tranche 3 will vest if the Company’s 90 Day VWAP up to and including 30 June 2021 is at least $0.55.

Will be interesting to see if this performance hurdle drives a good news cycle form management over the next month or so, as they are well short of the hurdle ATM.  

Management Medium Term targets from their September Presentation.  They have lowered the 2024 goal from 1200 to 1000 advisers recently, but are ahead 2021 target.   

If this is what success looks like, then SEQ  could easily have a market capitalisation over $400 M in 3-4 years.  I would be happy if they get to $250 M by 2024.