OMNI BRIDGEWAY LIMITED FY23 results
23 August 2023
Contents
01 | Highlights | 04 | Strategy |
02 | Financial results | 05 | Annexure |
03 Portfolio performance
Certain terms used throughout this presentation, including but not limited to, total gross income and revenue, investment income, estimated portfolio value (EPV), implied embedded value (IEV), and commitments are presented as non-IFRS information.
Further to this, commitments and EPV include all current investments (unconditional, conditionally funded, IC approved and investments disclosed as income yet to be recognised), whereas IEV excludes conditionally funded and IC approved investments.
Fund 1, Fund 5, and Fund 7 are not consolidated within the Group Consolidated Financial Statements; the residual interest in Fund 1 is recognised as an investment in associate and Fund 5 is brought in at the Group's attributable 20% share of income, assets, and liabilities with no associated non-controlling interests (NCI).
Throughout this document, Fund 5 and Fund 7 are presented at 100% values with the respective external investor's interests reflected as NCI. Fund 1 was deconsolidated on 31 May 2023; its metrics, effective from this date, are not disclosed in this presentation.
Further information on terms used in this presentation is available on slide 22and definitions of key concepts are included in our Glossary https://omnibridgeway.com/investors/omni-bridgeway-glossaryand should be read in conjunction with this presentation.
FY23 RESULTS | 23 AUGUST 2023 | 2 |
Significant growth in key drivers
For the 12 months ended 30 June 2023
Total gross income and revenue | Commitments1 | Funds under management | |
$333.0m +51% | $544.2m +17% | ~$2.5bn | |
From diversified sources | Achieved a new record | Across a balanced portfolio | |
including secondary market sales | and our FY23 target | ||
NPAT 2H23 turnaround v 1H23 | Estimated portfolio value (EPV1) | EPV conversion rate | |
+203% | $30.5bn +12% | 14% | |
FY23 NPAT $0.9m | After completions, removal | Life to date completed investments2 | |
of impairments, disposals | |||
Cash and receivables1 | Implied embedded value (IEV)1 | ROIC | IRR3 |
$360.4m | $3.9bn +9% | 1.10x | 77% |
Plus access to $60m debt | $1.0bn provisionally attributable to OBL, | Life to date completed investments2 | |
Including $129.2m OBL balance sheet | excluding management fees and | ||
potential performance fees4 |
- Fund 5 is not consolidated within the Group Consolidated Financial Statements, here it is presented at 100%.
- Reflects completions in Funds 1 to 5 and OBL balance sheet since inception, excluding partial secondary market sales. Reflects Fund 6 completions since OBE acquisition in 2019, including investments acquired and funded subsequently. Fund 1 includes metrics up to 31 May 2023, the date of its deconsolidation.
- IRR information prior to FY12 is not available due to the difficulty in extracting it from legacy systems.
4. Further information on terms used in this presentation is available on slide 22 and definitions of key concepts are included in our Glossary https://omnibridgeway.com/investors/omni-bridgeway-glossary
Highlights
Financial results Portfolio performance
Strategy
Annexure
FY23 RESULTS | 23 AUGUST 2023 | 3 |
Financial highlights
$m | 2H23 | 1H23 | Change from | FY23 | FY22 | Change from |
1H23 | FY22 | |||||
Consolidated Group | ||||||
Litigation investments proceeds1 | 139.6 | 96.1 | 45% | 235.7 | 217.3 | 8% |
Cash proceeds on sale of participation in Fund 1 assets | 47.7 | - | 47.7 | - | ||
Litigation income proceeds (grossed up to include all Funds at 100%) | 187.3 | 96.1 | 95% | 283.4 | 217.3 | 30% |
Third party income from sale of investment vehicle | - | 86.6 | 86.6 | - | ||
Less third party interest of Fund 5 | (33.6) | (18.2) | (51.8) | (12.6) | ||
Litigation investments proceeds | 153.7 | 164.5 | (7%) | 318.2 | 204.7 | 55% |
Management fees | 4.0 | 3.5 | 14% | 7.5 | 5.7 | 31% |
Interest revenue and other | 5.1 | 2.2 | 7.3 | 10.6 | ||
Total gross income and revenue | 162.8 | 170.2 | (4%) | 333.0 | 221.0 | 51% |
Litigation investments costs derecognised (non-cash) | (45.2) | (61.5) | (106.7) | (131.8) | 19% | |
Derecognition of subsidiary and recognition of residual interest in Fund 1 | (20.5) | - | (20.5) | - | ||
Reclassification to share of income from associates | 0.2 | (2.5) | (2.3) | - | ||
Third party share of sale of investment vehicle | - | (86.6) | (86.6) | - | ||
Total income (reflecting Consolidated Group) | 97.2 | 19.6 | 396% | 116.8 | 89.2 | 31% |
Litigation investments - impairment and adverse costs | (9.4) | (3.7) | (154%) | (13.1) | (8.1) | (61%) |
Amortisation of litigation investments - claims portfolio | (1.3) | (2.7) | 52% | (4.0) | (5.7) | 28% |
Employee expenses | (35.0) | (39.0) | 10% | (74.0) | (59.1) | (25%) |
Other expenses | (14.5) | (17.6) | 18% | (32.1) | (25.5) | (26%) |
Fair value adjustments of financial assets and liabilities | 2.6 | - | 100% | 2.6 | 7.4 | (65%) |
Profit / (loss) before tax | 39.6 | (43.4) | 191% | (3.8) | (1.8) | (111%) |
Income tax benefit / (expense) | (8.6) | 13.3 | (165%) | 4.7 | 8.3 | (44%) |
Profit / (loss) after tax | 31.0 | (30.1) | 203% | 0.9 | 6.5 | (86%) |
Highlights
Financial results Portfolio performance
Strategy
Annexure
1. Data includes interest income on purchased claims. 1H23 and FY22 have been retrospectively adjusted to reflect this.
FY23 RESULTS | 23 AUGUST 2023 | 4 |
Financial summary
For the 12 months ended 30 June 2023
+$61.1m NPAT 2H23 v 1H23 203% turnaround
reflecting improved income, lower expenses and signalling momentum heading into FY24
Significant improvement in total income 2H23 v 1H23
with 20 of 33 completions and strong return multiples occurring in 2H
$283.4m litigation proceeds +30%
comprising $235.7m investment completions and $47.7m cash proceeds from sale of participation in Fund 1 assets
Net gain of $27.2m
recognised from the deconsolidation of Fund 1
+31%% management fees on FY22
$55.2m IYTBR
of which 43% converted in Aug-23
$13.1m impairment expense and adverse costs
reflects the best estimate of the exposure across several investments
2H23 expenses -9% on 1H23
reflecting non-recurring items and initial savings from expense optimisation with a continued focus on cost efficiencies
into FY24
Higher FY23 expenses predominately relate to the expansion of the platform, including increased headcount (224 v 199) and expenses which were subdued due to COVID-19 in FY22
Highlights
Financial results Portfolio performance
Strategy
Annexure
FY23 RESULTS | 23 AUGUST 2023 | 5 |
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Disclaimer
Omni Bridgeway Limited published this content on 23 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2023 23:46:03 UTC.
