The Kelly Partners Group Holdings Ltd (ASX: KPG) released a positive set of results today for the first half of the 2021 financial year. But despite the news, trading in the Kelly Partners share price remains unbudged late morning, and currently remains at the starters gate price of $2.10.
We'll look at the past months' share price action below, but first a look at the company's latest results.
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What results did Kelly Partners report?
In this morning's ASX release, Kelly Partners reported revenue of $24.8 million. That's an increase of 5.8% from the $23.5 million in the first half of FY20. It attributed the rise to annualised revenue contributions from acquisitions the group completed in FY20.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.6 million was up 16.8% from the previous corresponding half year. And cash flow from operations increased by 41.8% to $8.1 million.
The company also reported its underlying NPATA* earnings per share (EPS) were 6.24 cents per share. It credited the 55.7% lift in EPS to the company's share buybacks along with the growth in the underlying attributed NPATA.
(*NPATA is adjusted for amortisation of customer relationship intangible assets acquired.)
Ordinary dividends per share (DPS) of 2.66 were up 10% from the first half of the 2020 financial year.
Commenting on the first-half results, CEO Brett Kelly said:
Kelly Partners is a strongly defensive annuity style revenue business growing at c.15% p.a. since IPO three years ago.
Our strategy is to be focused on tax and accounting services to private business owners with an addressable market in excess of $12.0 billion ensures that we feel confident that there is still very substantial growth ahead. The 1H21 performance of our businesses is pleasing and has improved significantly on 1H20.
Looking ahead, Kelly added:
We expect to continue to grow our earnings. We have and continue to prepare the business for the current economic environment and the business remains well positioned and well capitalised over the medium term to execute its five-year growth plan.
In other forward guidance, Kelly Partners forecast an increase in its FY21 dividend to 5.32 cents. That's up 10% from the 4.84cents for FY20. Cautioning that COVID-19 remains a wild card, it also stated its intention to maintain the dividend payout ratio of 50–70% of underlying NPATA.
Kelly Partners share price snapshot
2021 has been a bit of a slog for the Kelly Partners share price, down 4.1%. That compares to a 2.4% gain on the All Ordinaries Index (ASX: XAO).
But go back a bit further, and Kelly Partners' shares have hugely outperformed. Over the past 12 months, shares are up 139%. And the share price has surged a remarkable 250% since the 23 March lows.
