Kelly Partners Group Surges with 23.1% Revenue Growth in 1H24

Overview:

In a groundbreaking financial report, Kelly Partners Group (ASX: KPG) reveals a stellar 23.1% revenue growth to AU$52.9 million in the first half of 2024 (1H23: AU$42.9 million). This surge is complemented by a remarkable 25.0% increase in the Underlying Attributed NPATA, reaching AU$4.4 million.

Global Expansion and Strategic Initiatives:

KPG is steadfast in its mission to become Australia's leading global accounting firm for private business owners. Operating in Australia, Hong Kong, India, and the USA, KPG's global team now boasts 542 members, including 91 partners. With successful partnerships in Los Angeles and Mumbai, the company's revenue now totals AU$110 million annually.

Financial Resilience and Client-Centric Approach:

Despite significant investments in FY23 for global growth, KPG showcases financial resilience with a 23.1% revenue increase in 1H24. The client base expanded by 22% to 23,000, with an impressive Net Promoter Score of +70, outperforming the industry average.

Digital Transformation and Brand Recognition:

KPG's commitment to digital innovation is evident through initiatives like the Be Better Off Challenge and further development of the Kelly+Partners app. Brand strength is reflected as 80% of clients associate "Transparency" and "24/7 Access" attributes with KPG.

Financial Metrics Highlights:

• Group Revenue: Up 23.1% to AU$52.9 million
• Underlying EBITDA: Up 33.7% to AU$15.5 million
• Underlying NPATA: Up 25.0% to AU$4.4 million
• Earnings Per Share: Up 25.0% to 9.78c
• Ordinary Dividends Per Share: Up 10.0% to 2.64c

Strategic Financial Management:

KPG's financial success is marked by a cash flow increase of 11.4% to AU$11.5 million and a strong cash conversion ratio of 101.4%. While net debt increased to $45.6m, the gearing ratio is considered manageable, and debt repayments totaledAU$5.4 million in 1H24.

In conclusion, KPG's 1H24 financial report not only showcases robust financial performance but also highlights the company's strategic global expansion, client-focused approach, and commitment to digital innovation. As KPG continues its mission, its impressive growth trajectory positions it as a key player in the evolving landscape of global accounting.

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